Hewitt reveals initial HMO costs

Preliminary information from Lincolnshire-based Hewitt Associates, a global human resources consulting and outsourcing company, indicates that initial 2010 HMO premium rates will increase by approximately 11.8 percent consistent with last year's projected rate increases and down from 13.2 percent in 2008. Final average HMO rates for 2009 increased by 9 percent after plan changes, negotiations and terminations. Maureen Fay, a principal and co-leader of Hewitt's HMO rate analysis project said, "Given these challenging economic conditions, we expect to see employers continuing to implement similar - if not more aggressive - strategies for 2010."