United HealthCare may reduce Medicare benefits
Although Minneapolis-based United HealthCare plans to spend $35 million in 1998 and 1999 to upgrade their computer systems to deal with the new millennium, finances are tight in its Medicare product line. This information was part of the corporation's 10-Q filing with the Securities and Exchange Commission.
United Healthcare also indicated in the filing that a 2% weighted-average increase in rates for Medicare premium is anticipated for 1998 and again in 1999.
The company stated in the filing that the modest level of these hikes could hurt its ability to maintain or lower its Medicare premium revenue that goes toward medical costs. Because of these concerns, United is considering adjusting benefits in certain Medicare markets, depending on its financial performance and competitive position.
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