Report: U.S. HMO profit growth is slowing

JUPITER, Fla., Oct. 25 (UPI) -- U.S. health maintenance organizations earned 21.4 percent more in the first quarter of this year than they did in the same 2004 period.

Florida-based Weiss Ratings Inc. said the nation's HMOs reported a $3.6 billion profit for the first three months of 2005, representing a $646 million, or 21.4 percent, increase over the $3.0 billion earned during the first quarter of 2004.

While the 21.4 percent profit increase still represents strong growth for the industry, it is considerably less than other recent first-quarter increases, including 152.7 percent in 2002, 60.9 percent in 2003, and 32.9 percent in 2004.