New York State
RATE INCREASES GRANTED TO CENTRAL NY AREA HMOS
New York, January 22, 1998
The Insurance Department today announced that Health Services Medical Corporation of Central New York and North Medical Community Health Plan have been granted their requested average rate increases effective January 1, 1998. Health Services Medical Corporation received its requested 13.2% average rate increase on all its contracts and riders in the Syracuse area and a 15% average rate increase on all its contracts and riders in the Utica area. North Medical Community Health Plan received its requested 13.5% average rate increase for its group contracts and riders.
The Insurance Departments decisions come after a careful examination of the HMOs current financial conditions and their projections of revenue and expenses for next year. Testimony at public hearings in Syracuse was also considered.
With both the requested rate increase and a separate file and use rate adjustment, North Medical Community Health Plan projects an underwriting gain of $621,000 for 1998. With its requested rate increases, Health Services Medical Corporation projects an underwriting gain in 1998 of $4.8 million. The Department found the HMOs projections reasonable.
The rate increase affects 84,680 of Health Services Medical Corporations members in Broome, Chemung, Cortland, Herkimer, Oneida, Onondaga, Schuyler, Tioga, Tompkins and portions of Cayuga, Madison and Steuben counties (Syracuse region) ; and 14,480 members in portions of Oneida, Oswego, Herkimer, and Madison counties (Utica region). North Medical Community Health Plans rate increase affects 9,960 members in Onondaga and Oswego counties.
Tables listing individual contract rate changes are available upon request.