Mississippi Insurance Commissioner George Dale said that when health maintenance organizations (HMOs) fail, it can often be linked to getting into a bind after offering prices that were too low.
“There is a HMO price war going on not just in Mississippi, but around the country,” Dale said. “During a price war profits are difficult. The industry is struggling somewhat. HMOs are trying to grab market shares by lowering prices and have put themselves into a bind. That`s what we`ve been seeing, and it isn`t just in Mississippi.”