Double-Digit Health Cost Increases to Continue in 2010
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Costs for the most popular types of health care coverage are projected to increase at double-digit rates through the remainder of 2009 and into 2010, according to a recent national survey of insurers and administrators conducted by Buck Consultants, an ACS company (www.buckconsultants.com). This is so even though very small declines in costs were evident in some types of health plans from a year ago.
“Health insurers may increase costs in light of the continuing economic downturn and legislation such as mental health parity and the recent expansion of COBRA,” noted Harvey Sobel, a Buck principal and consulting actuary, who directed the survey. “They may also attempt to increase their prices prior to the implementation of national health care reform, including a new ‘public insurance option’.”
Buck’s 20th National Health Care Trend Survey found that costs for the most popular plans continue to increase by more than 10 percent and are slightly lower than the trends reported in Buck’s previous survey, released in September 2008.
Preferred provider organization plans are estimated to rise 1 1 percent (a slight decline from the 11.1 percentayearago). For point of service plans, increases are at 10.2 percent, down from 10.8 percent a year ago. HMO costs also dipped slightly: to 11 percent from 11.1 percent. High-deductible consumer-driven plans are at 10.4 percent increases, down from 10.7 percent.
Health insurers reported an average prescription drug trend of 10.8 percent, down 0.6 percent from the 11.4 percent reported in the prior survey. This is three percentage points higher than the 7.8 percent reported by pharmacy benefits managers (who generally do not take any underwriting risk).







