Health plan cost trends declining.
Position | News & Numbers |
Medical and prescription drug plan cost trend rates for 2012 are expected to decline from 2011 levels, and actual trends for 2010 were at their lowest level in more than 10 years, according to the 2012 Segal Health Plan Cost Trend Survey. (Trend is the projected year-over-year change in health plans' per capita claims costs as determined by insurance carriers, managed care organizations, pharmacy benefit managers, and thirdparty administrators.)
Key findings of the survey include the following:
* All medical plan types are projected to experience lower cost trends for 2012.
* Prescription drug trends for active participants and early retirees are expected to decline by 2 percentage points from projections for 2011.
* Medicare Advantage HMO trend rates are projected at 3 percentage points less than HMO trends for active participants and early retirees.
* Price inflation for services and supplies remains the biggest element of overall medical plan cost trends.
* Three quarters of survey participants expect the extension of coverage (under the Affordable Care Act) to dependent adult children up to age 26 will contribute to an increase in 2011 plan costs.
The survey lists the following strategies for dealing with health-care costs:
* Tightly managing provider network reimbursement increases to obtain deeper discounts.
* Making effective investments in wellness and disease management...
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