Of course, some Western states such as Arizona, Oregon and California have had their elderly citizens enrolling in HMOs for years. But now many Eastern states are starting to catch up. The news came after Empire officials worked long and hard at gaining the agreement with HCFA, and then had to wait around nervously for an answer. So we see a huge opportunity for Empire, for health care providers and for enrollees. Empire isn't alone.
Observers expect the trend to continue.
By late last year, about 10 percent of Medicare's 37 million beneficiaries had enrolled in HMOs. That figure had already climbed to about 11 percent by April, when a HCFA report was released. And that trend will continue. HMOs are gearing up now to contract with Medicare to provide coverage for this volume of Medicare recipients. Some HMOs will charge a premium that will cover additional benefits beyond what Medicare includes.