CHICAGO – According to the latest survey by Aon Consulting, employers will face a 10.6 percent increase in healthcare costs.
Aon Consulting Worldwide, a global human capital consulting firm, has conducted the survey of healthcare trends every spring and fall since 2001. The survey is designed to assist employers as they evaluate health insurance premium renewals and develop self-funded health plan claim projections.
Data from more than 70 medical, dental, pharmacy and vision vendors was collected.
“This survey gives (employers) a benchmark to what other employers are experiencing so they have something to compare themselves against,” said Bill Sharon, senior vice president of Aon Consulting and director of the study.
Medical plan costs are expected to increase at double-digit rates, due to such factors as increases in patient demand for services, an aging population, medical technology costs, increasing hospital costs, an increase in the price and use of prescription drugs, poor lifestyle choices, cost shifting and medical malpractice costs.
The survey found that HMOs will see a 10.6 percent increase in healthcare costs, (last year’s increase was 10.9 percent); point-of-service plans will see a 10.5 percent increase (10.8 percent last year); preferred provider organizations will see in increase of 10.7 percent, (11.2 percent last year); and consumer driven health plans will see a 10.5 percent increase (10.7 percent last year).
"While the medical trend rate is still more than twice the consumer price index, it is encouraging to see that healthcare cost rate increases are continuing to slow down,” said John Zern, Aon Consulting's U.S. Health & Benefits practice director. “This is a step in the right direction for companies nationwide that continue to feel significant healthcare price pressures.”
Post-65 retiree medical plan trend rates are down from the fall 2007 forecast; Sharon said this rate is driven by Medicare. Due to postponed plans to cut physician reimbursement, he said, these fees may rise again.
Sharon said the survey “sends a message to employers that they are going to have to re-double their efforts.” But, he added, “the good news is that there are quite a few strategies and tactics available to them to bring that number down,” including wellness programs, health promotion tools and consumer driven plans.