News Headlines Article

HMO profits remain small as health costs soar
Sacramento Business Journal

Though health care costs continue to rise, profits at the seven big health plans that serve the Sacramento region remain slim, new state figures show. The companies together reported almost $86 billion in revenue from nearly 17 million Californians in 2011. But profit totaled just $3.2 billion. The overall profit margin among HMOs that serve the Sacramento region is 3.7 percent, according to financial reports posted online by the California Department of Managed Health Care .