Dallas' High Uninsured Rate Contributes to Premium Increases Plaguing Employers

NASHVILLE, Tenn., May 19 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that a high uninsured rate in the Dallas area is creating a ripple effect throughout the market's healthcare industry that ultimately is increasing premiums employers pay to provide health benefits for their employees. According to the recent Dallas Market Overview, the high uninsured rate in the market is increasing levels of uncompensated care in area hospitals, which leads hospitals to pressure health plans for higher reimbursements to help them balance some of the losses associated with caring for the uninsured. Such reimbursement increases are among the escalating costs that drive premiums higher.

The report finds that efforts to lower medical costs are emerging throughout the region, and include the development of patient-centered medical homes, a regional health information exchange and wellness programs.

The uninsured rate in the Dallas market is 24 percent as of July 2009. According to U.S. Census data, Texas leads the nation in the percentage of uninsured residents at 25 percent.

"The high-level of uninsured residents in the Dallas market is a key factor driving premium increases for employers in this region," said HealthLeaders-InterStudy Analyst Deborah White. "Because of these premium increases, employers will likely shift more health insurance costs to employees via high-deductible health plans and look to implement cost-saving initiatives such as employee wellness programs and worksite health clinics."

In addition to providing detailed analysis of the ripple effect the area's high uninsured rate is having on the market's healthcare industry, the Dallas Market Overview provides local-level insights about:

• Health system integration in the Dallas market and efforts to develop coordinated care programs.
• The impact of healthcare reform legislation for physician-owned hospital development.
• Medicaid-related developments, including the likely reduction of Medicaid reimbursement rates for Texas providers.

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SOURCE HealthLeaders-InterStudy