HMOs thrive on Eastern seaboard

Enrollment in New England Medicare managed care plans grew by 90% in the last 18 months, according to a recent market analysis by Mark Farrah Associates in Kennebunk, ME. Findings of the market analysis include:

• As of March, the region’s health maintenance organizations (HMOs) enrolled more than 360,000 members in either a Medicare risk or Medicare cost plan, vs. fewer than 200,000 in Sept. 1996.

• As of July, the Health Care Financing Administration in Washington, DC, reported 27 Medicare risk contracts and three Medicare cost contracts in the six-state region.

• Only 15% of the more than 2 million Medicare beneficiaries in the region had enrolled in a managed care plan as of December 1997.

The report, New England HMO Monitor, is available for $175. For more information, contact Mark Farrah Associates at (207) 985-8484. E-mail: