CAMBRIDGE, MASS.-The growth rate in medical costs for MCOs in 2006 will decrease marginally compared with 2005 as a result of continued efforts to control costs, according to a MedPanel Inc. survey of managed care medical directors representing about 30 million U.S. lives.
CAMBRIDGE, MASS.-The growth rate in medical costs for MCOs in 2006 will decrease marginally compared with 2005 as a result of continued efforts to control costs, according to a MedPanel Inc. survey of managed care medical directors representing about 30 million U.S. lives.
"While managed care executives anticipated a rise in overall costs between 2005 and 2006, the rate of increase was expected to be slightly lower than the increase seen from 2004 to 2005," says Stephen Bubb, senior director, quantitative services at MedPanel, a global online research firm. Managed care medical directors in MedPanel's 2006 and 2004 surveys predicted medical cost growth rates of 10.4% and 10.9%, respectively.
In the 2006 survey, the majority of medical directors (68%) indicated that managing specialty pharmacy costs is a high priority. Further, MCOs are expected to adopt health-plan designs that shift decision-making to consumers.
In the current environment, MCOs have no choice but to continue aggressive attempts to control pharmacy costs and minimize hospital utilization rates, according to Matt Fearer, senior vice president, MedPanel. "Strategic investment in persistency and compliance programs and prevention initiatives will remain critically important, particularly for suppressing rates of hospitalization. Increased cost-sharing for patients appears inevitable," Fearer says. "As MCOs introduce consumer-driven products, we encourage them to focus on educational programs that help consumers to make informed healthcare purchasing decisions."
Opzelura Topical Cream Drives Incyte's Record Growth in 2024 with 50% Revenue Surge
February 18th 2025Opzelura is a treatment for nonsegmental vitiligo in patients 12 and older, making it the first and only cream in the U.S. that helps restore skin color for this condition. It’s also approved to treat mild to moderate atopic dermatitis in patients 12 and older who are not immunocompromised.
Read More
Breaking Down Health Plans, HSAs, AI With Paul Fronstin of EBRI
November 19th 2024Featured in this latest episode of Tuning In to the C-Suite podcast is Paul Fronstin, director of health benefits research at EBRI, who shed light on the evolving landscape of health benefits with editors of Managed Healthcare Executive.
Listen
In this latest episode of Tuning In to the C-Suite podcast, Briana Contreras, an editor with MHE had the pleasure of meeting Loren McCaghy, director of consulting, health and consumer engagement and product insight at Accenture, to discuss the organization's latest report on U.S. consumers switching healthcare providers and insurance payers.
Listen