Media Release

For: Immediate Release
Date: May 7, 2003
Contact: Bruce Cryan (401) 222-5123

RI Health Department Evaluates Commercial Health Plans’ Performance; Premiums up, Profits down, but Quality and Member Satisfaction High

Today, the Rhode Island Department of Health (HEALTH) released a study detailing the operations of the state’s commercial Health Plans. The "RI Commercial Health Plans’ Performance Report -2001" compares results in 2001 with those of the previous year and with regional and national benchmarks. Based on the findings, statewide profitability of Health Plans dipped from 4.4% to 3.3%. Premiums increased 10% ($186 to $204 per month), and more of each premium dollar was spent on healthcare services (84.1% to 85.2%). Physician costs lead all expenses; however, greater spending on pharmaceuticals continued to drive expense increases over time. With the exceptions of the Beta Blocker Treatment, and Follow-Up for Mental Illness measures, RI Health Plans performed quite favorably on other quality measures compared to Plans elsewhere. Rhode Islanders were also more satisfied with their Health Plans and with their healthcare than were members of other Health Plans.

"This report continues HEALTH’s efforts to provide performance information on the State’s healthcare system," said Dr. Patricia A. Nolan, MD, MPH, Director of the RI Department of Health. "We hope that consumers and employer-purchasers will use this information to understand and navigate Health Plans for their families and businesses."

HEALTH produced the Report as a direct result of the Health Care Accessibility and Quality Assurance Act, passed in 1996. Author Bruce Cryan noted that public reporting promotes accountability and helps focus improvement efforts within the Plans themselves. This Report, a companion Report on RI’s Medicare and Medicaid Health Plans, and other publications on hospital patient satisfaction and hospital quality are available on HEALTH’s website (www.HEALTH.ri.gov).