HealthLeaders- InterStudy, the managed care business of Decision Resources, Inc., finds that as new Medicare legislation comes into effect, HMOs will be challenged for their Medicare business by PPOs. Prior to the Medicare Modernization Act, PPOs were mostly unavailable to Medicare beneficiaries. Under the new legislation, however, Medicare patients will have an expanded opportunity to enroll in PPOs, which are becoming more popular because of the flexibility and greater provider choice they offer to patients.

Because of this new legislation, firms like PacifiCare that offer PPOs that bear risk will challenge Kaiser for managed Medicare lives in California.

"According to information in our Competitive Edge Managed Care Regional Market Analysis, Kaiser Foundation Health Care and PacifiCare currently cover more than 74% of California's Medicare HMO lives," says Lance Wolkenbrod, program manager for HealthLeaders-InterStudy. "Because Kaiser does not offer PPO products, we expect firms like PacifiCare to vie for more of the managed Medicare market as they offer PPO coverage to Medicare beneficiaries."

About Competitive Edge Managed Care Regional Market Analysis

HealthLeaders-InterStudy's Managed Care Regional Market Analysis, Part 3 of the Competitive Edge report series, provides detailed information on HMO and PPO enrollment and market penetration in 391 MSAs nationwide. It examines the market structure and dynamics of metropolitan managed care markets and includes key benchmarks that allow users to compare general market information to data about a specific location.

About HealthLeaders-InterStudy

HealthLeaders-InterStudy is the new managed care business of Decision Resources, Inc., offering data, directories, news, and analyses of the ever- evolving managed care industry. By identifying important trends and influences such as health plan demographics, key market events, major health care organization alliances, and impending legislation, HealthLeaders-InterStudy products serve as comprehensive information tools to help executives stay abreast of market dynamics in the health care industry. For InterStudy products, please visit http://www.interstudypublications.com/. For HealthLeaders products, please visit http://www.healthleaders.com/.

About Decision Resources

Decision Resources, Inc., (http://www.decisionresources.com/) is a world leader in research publications, advisory services, and consulting designed to help clients shape strategy, allocate resources, and master their chosen markets.

  For more information, contact:    Frank Sama    HealthLeaders-InterStudy    781-296-2553    fsama@dresources.com 

SOURCE: HealthLeaders-InterStudy

CONTACT: Frank Sama of HealthLeaders-InterStudy, +1-781-296-2553,
fsama@dresources.com

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