New survey shows financial pain for employers and employees with few good options to manage the trend
CHICAGO-Healthcare costs for employer-sponsored health plans are expected to increase by more than 10% in 2010, according to a survey of more than 60 health insurance companies.
Aon Consulting, surveyed plans serving more than 100 million insured individuals.
"While we're seeing a slight decrease in the trend rates, it's still at double digits, and this year, it's compounded by a struggling economy, layoffs and salary freezes or reductions," says Tom Lerche, healthcare practice leader for Aon Consulting.
THREE WAYS TO SHAPE PLANS
Because the spiraling cost trend for the next 12 months is expected to increase 10% or more, plan sponsors are focused on tactics and strategies to reduce medical trend to mid- to low-single digits.
"Given the financial pain on both companies and employees from the recession, employers are re-examining changes in health plan options, plans design, and clinical solutions which may have been rejected in 2008," Lerche says. "In particular, employers are conducting audits to saving money in the short run and designing and implementing wellness strategies for long-term impact."
According to Lerche, there are three ways most plan sponsors may shape their plan offerings for 2010:
Additionally, prescription drug cost increases are expected. The Aon survey projects drug costs will increase 9.3% in 2010, slightly lower than the 9.4% trend rate one year ago.
FDA Updates for the Week of May 6: An Approval, a Delay and Two Ad Comm Meetings
May 11th 2024The FDA has approved a liquid mycophenolate to prevent organ rejections but delayed the approval of Moderna’s RSV vaccine. Regulators have set dates for advisory committee meetings for midomafetamine for PTSD and for donanemab in Alzheimer’s disease. Additionally, the agency has set review dates for a subcutaneous Opdivo and a pancreatic/lung cancer therapy.
Read More
2024 Emerging Leaders in Healthcare — Submit For a Chance to Be Featured in MHE's August Issue
May 10th 2024MHE Editors are seeking diverse healthcare professionals from different backgrounds and healthcare sectors, with individual interests. Eligible candidates are early or mid-career leaders with less than 10 years of experience. Award winners will enjoy complimentary passes to the PBMI Annual National Meeting in Orlando, Florida, from Sept. 4-6. Additional perks include a feature in our August issue, a subscription to MHE and more!
Read More