According to a report published by financial analysis firm Weiss Ratings Inc., first quarter profits at the nation's
health maintenance organizations (HMOs) increased 61 percent in the first quarter of 2003. HMOs recorded a $2.3 billion profit for January, February and March of 2003, a striking increase from the $1.4 billion earned the first quarter of 2002.
A spokesperson for Weiss cited premium increases and cost-cutting measures for the enormous gains. Tampa-based Aetna Health, which reported first quarter profits of $61.4 million (up from $5.3 million in the first quarter of 2002), experienced the largest increase in net income.