Survey Finds HMO Rates for 2003 Surging

HMO rates for next year are surging more than 20%, an unexpectedly high figure that sets the stage for a third year of double-digit increases in overall health-care premiums, a new survey says.

As companies begin negotiations for 2003 contracts, rates are rising an average of 22% but as much as 94%, according to the survey by Hewitt Associates. The consulting firm’s Web site captures rate information from nearly 140 companies with a total of more than 1 million employees.

Hewitt had been expecting HMO rates to increase about 14% for 2003. HMO premiums for 2002 rose an average of 15.3%.