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Industry Group Forecasts Rise in HMO Fees:...

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From Times Staff and Wire Reports

Industry Group Forecasts Rise in HMO Fees: Rising hospital costs and physicians’ salaries will contribute to an estimated 12.9% increase in premiums next year for patients of health maintenance organizations, the Group Health Assn. of America Inc. said. The association based its projection on a survey of 44 HMOs enrolling more than 11 million people. Increases averaged 16.9% in 1989 and 16% this year, said the group, the national professional organization for HMOs, which are prepaid health plans.

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