December 2004

Study identifies most competitive managed-care states

DEC. 9, 2004 — Texas, Wisconsin and Kansas are the most competitive states for managed-care business, with no single managed care plan having more than a 20 percent share of HMO and PPO covered lives. This contrasts to Hawaii, Alabama and Connecticut, where one plan dominates with at least a 50 percent market share in each market, according to a study by HealthLeaders-InterStudy, the managed care business of Decision Resources.

"In Connecticut, three firms account for 80 percent of the combined HMO and PPO market," said Lance Wolkenbrod, program manager for HealthLeaders-InterStudy. "By contrast, the top three plans in Texas make up only 36 percent of that state's managed care market. It is critical that firms such as pharmaceutical companies and health plans aiming to influence or compete with managed care companies at the state level understand these regional differences."

Source: Health Leaders-InterStudy, www.interstudypublications.com

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