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FIRST HEALTH GROUP CORP. /Downers Grove, Illinois Plan Manager Sees Benefit In Self-Insurance.(A)
By Robin M. Grugal
Investor's Business Daily
Most companies think of health maintenance organizations when they grope forways to cut health care costs.
But with the recent rise in HMO premiums, alternative cost-saving measures have begun to take hold. Many companies opt to self-insure. They'd rather shoulder the medical cost risk internally than pay an insurer to do so.
Such thinking plays right into the hands of First Health Group Corp.
First Health isn't an HMO or an underwriter of insurance risk. It instead manages and services the health benefits of large, self-insured corporations.
Most of its revenue comes from renting access to its preferred provider organization -- a national network of 375,000 doctors and 4,100 hospitals. Clients benefit from the low rates it contracts. The company also administers benefit plans.
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