January 8, 1999 (The Editor’s Desk is updated each business day.)

More workers covered by HMOs and PPOs

About 76 percent of full-time employees in medium and large private establishments participated in medical care plans in 1997, roughly the same share as in 1995.  However, participation in health maintenance organizations (HMOs) and preferred provider organizations (PPOs) increased, while coverage by traditional fee-for-service plans decreased.

[Chart data—TXT]

In 1997, about 73 percent of full-time employees with medical care benefits were covered by non-traditional health care plans, including 33 percent by HMOs and 40 percent by PPOs.  In 1995, 63 percent of covered workers had non-traditional health care plans.

Coverage by traditional fee-for-service plans continued to decline: only 27 percent of all medical benefit participants were in fee-for-service plans in 1997, compared with 37 percent in 1995.

As a result of this shift in coverage, employees with medical care benefits were much more likely to be eligible for preventive care—such as routine physical exams, well-baby care, and immunizations—in 1997 than in 1995.  Non-traditional medical care plans often provide such benefits.

Data on health care coverage and other employee benefits are available from the BLS Employee Benefits Survey.  For additional information, see news release USDL 99-02, "Employee Benefits in Medium and Large Private Establishments, 1997."