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Eleven insurers, including newcomers from around U.S., think huge North Texas market is underserved
A tidal wave of almost a dozen health maintenance organizations could be flooding the Metroplex in coming months.
Seven companies are awaiting licensure after applying in recent weeks and months with the Texas Department of Insurance to offer health maintenance organizations in the Dallas-Fort Worth area, and another four businesses are expected to apply for HMO licenses within 20 days.
"We've never had this many at one time from an area in the history of HMOs," said Leah Rummel, director of HMO and utilization review for the commission.
The newcomers include relative unknowns from places like Los Angeles, New Hampshire and Wisconsin, as well as established giants like Blue Cross and Blue Shield of Texas Inc. Each is drawn to the Metroplex's huge population and low HMO penetration rate, but observers and established players doubt the market can absorb the influx of new HMOs that must compete against 10 existing Dallas-area health maintenance organizations, with a combined 787,000 members. …