Survey: HMOs Best PPOs in Delivering Services
Survey: HMOs Best PPOs in Delivering Services
Aug. 18, 2009 – Once maligned as providing poor quality health care services, Health Maintenance Organizations (HMO) fared much better than their Preferred Provider Organization (PPO) counterparts in a recent study conducted by Consumer Reports.
As federal lawmakers wrangle over proposed health care reform initiatives, respondents to the Consumer Reports survey indicated their net costs rose by a median amount of 38 percent over the past two years – although 64 percent said they were either “very” or ‘completely” satisfied with their current health insurance plan.
While 64 percent of those surveyed indicated they like their current health care plan, researchers said it indicates downward movement from the last survey conducted two years ago.
“That’s a lukewarm response and a slight drop from the 67 percent in our 2007 report,” said Mandy Walker, Consumer Reports’ senior project editor. “In terms of services we rate, that puts satisfaction with health insurance above satisfaction with cable TV, a perennial whipping post, but below pharmacies and real-estate agents.”
The 37,481 consumers queried for the study said annual out-of-pocket costs for plan premiums were up 38 percent from two years for HMOs and PPOs. Respondents reported paying a median premium cost of $1,829 for health care services, which is a $500 increase from the amount reported in 2006, according to the Consumer Reports National Research Center. Some 84 percent of those participating in the study received their health care benefits through employer-provided group health insurance.
Although survey respondents reported a median level $1,829 for health care, those enrolled in HMO plans tended to paid less while those enrolled in PPOs tended to pay more, according to the survey. Despite reporting similar customer satisfaction ratings, people enrolled in HMOs paid a median $1,466 in insurance premiums during the past two years while those enrolled in PPOs paid a median amount of $2,003.
Those enrolled in HMOs also paid less for medical bills than people enrolled in PPO plans. About 69 percent of seriously ill PPO members paid at least $1,000 on medical bills during the past two years versus about 47 percent of seriously ill patients enrolled in HMOs paying at least $1,000 in medical costs.
Whether enrolled in an HMO or PPO plan, service availability rated about the same. Of sick HMO members in need of service, about 15 percent reported trouble accessing health care while 14 percent of PPO members reported trouble in obtaining needed health care. Historically, HMOs have fared much worse than PPOs in service delivery but have closed the gap, according to Consumer Reports.
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