HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, finds that Indiana's HMOs showed a tiny 1 percent gain in premium revenues in 2004. The latest issue of the Ohio, Kentucky and Indiana Health Plan Analysis from HealthLeaders-InterStudy shows that five of the six largest HMOs in the state reported declining profits.

"While HMOs in all markets face challenges as the industry moves toward more consumer choice, those in Indiana must also battle the nation's largest insurer -- Indianapolis-based WellPoint Inc," said Jane DuBose, HealthLeaders- InterStudy analyst. "Fighting the economies of scale generated by WellPoint is only possible because most competing HMOs are provider-owned."

In addition, HealthLeaders-InterStudy predicts a significant push from Louisville, Kentucky-based Humana, Inc. Humana is attacking the Indiana health insurance market in all segments: small, medium, and large groups, as well as national accounts and Medicare. "Humana seems willing to commit significant resources to gain market share," said DuBose. "It will put pressure on the already stressed local HMOs."

  Other health plan news in Ohio, Kentucky and Indiana:    * Anthem Blue Cross and Blue Shield saw its net income rise in Kentucky.   * National HMOs in Ohio posted lower profits in 2004 than the year before,     but provider-owned and regional plans improved their bottom lines.   * UnitedHealthcare signed a long-term contract with Premier Health, a     major provider in Dayton, Ohio.  United seeks market share from Anthem     Blue Cross and Blue Shield, which has been unable to reach agreement     with Premier.    About HealthLeaders-InterStudy 

HealthLeaders-InterStudy, a newly formed company of Decision Resources, Inc. (http://www.decisionresources.com/), is the authoritative source for managed care data, analysis, and news. For more information, please visit both Web sites at http://www.healthleaders.com/ and http://www.interstudypublications.com/.

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

   For more information, contact:     Alex Jablokow    Decision Resources    781-296-2562    ajablokow@dresources.com 

SOURCE: HealthLeaders-InterStudy

CONTACT: Alex Jablokow of Decision Resources, +1-781-296-2562,
ajablokow@dresources.com

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