PPO Industry Calls for Increased Collaboration Among Non-Traditio...(litically active especially in re...),Health

regard to the AMA model act reforming PPO contracting.

-- Technology continues to offer the most promise, as well as the most

frustration in the PPO industry. While PPOs are identifying innovative

ways to implement technology and health IT solutions, lack of adoption

of technology by physicians and other industry stakeholders stymies the

full benefits technology could reap.

-- Disease management and wellness programs will remain popular as more

research emerges highlighting the benefits -- both health and financial

-- of preventing chronic diseases versus providing long-term treatment.

-- Enrollment in PPOs held steady in 2007, with 61 percent of all covered

employees enrolled in PPOs. Enrollment in PPO-based consumer directed

health plans (CDHPs) rose to 5 percent in 2007 from 3 percent in 2006.

-- More employers are using incentives to encourage employees to

participate in health management programs, such as health risk

assessments and behavior modification programs. The use of incentives

rose significantly among large employers in 2007 -- 23 percent up from

13 percent in 2005.

-- Large employers (those with over 10,000 employees) plan to utilize new

strategies for cost management over the next five years. Eighty-one

percent are interested in pursuing evidence-based design strategies, and

63 percent are interested in pursuing the creation of personal health

records.

"PPOs are chosen by more than 165 million Americans, which represents nearly 67 percent of all insured Americans," said Allen Karp, AAPPO chairman and vice president for Health Care Delivery for Aetna. "The popularity of PPOs, we believe, is due to our industry's dedication to preserving the hallmarks of the PPO delivery system for consumers and employers
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