Media Release

FOR IMMEDIATE RELEASE
Date: May 29, 2002
Contact: Bruce Cryan, MBA, MS (401) 222-5123

RI Health Department Evaluates Health Plan Performance; Trends Show Premiums and Profits Up; Member Satisfaction High

Today, the Rhode Island Department of Health (HEALTH) released a new report detailing the 1998-2000 operations of commercial health plans in the state. The report includes information on enrollment, market share, premiums, expenses, profitability, service use, effectiveness of care measures, member satisfaction, utilization review and other topics.

"This report continues our efforts to provide one of the most comprehensive analyses of Health Plan information in the nation." said Dr. Patricia A. Nolan, Director of the RI Department of Health (HEALTH). "Consumers, health care providers and policy makers can use this information to inform decisions about health care. The trend analysis, showing changes between 1998 and 2000, will help us understand the current situation and anticipate developments in the months ahead."

The 2000 Health Plans’ Performance Report gives a generally favorable review. According to the analysis, Rhode Islanders paid about the same (per member per month) as other New Englanders for their health insurance in 2000 (RI-$172; NE-$176). However, RI Health Plans scored higher on many measures of "clinical effectiveness" than regional plans. Rhode Islander’s satisfaction with their Health Plans (72%) also exceeded the regional rate (61%) by a wide margin.

Health Plans’ profitability improved in 2000. Premiums (per member per month) increased 22 percent from 1999, and Plans spent less of each premium dollar on health care services (85.3% in 1999, 84.4% in 2000). Health Plans spent more per member each month for physician services ($59.27) than other services in 2000 (up 9% annually from 1998). But the cost of prescription drugs rose faster than any other service—up 25% annually from 1998 to 2000. Although the report focuses on commercial Health Plans (556,000 members), it also displays similar information on Medicare (58,000 members) and Medicaid (98,000 members) Health Plans.

HEALTH produced the report (the third in a series) as a direct result of the Health Care Accessibility and Quality Assurance Act, passed in 1996. The Act requires Health Plans to submit information on operating and financial performance. Author Bruce Cryan notes that public reporting promotes accountability and quality improvement within the health care system.

The report and other information on hospital patient satisfaction and hospital quality are available on the HEALTH website (www.health.ri.gov).