Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Health Care Costs Continue to Fall, Albeit Slowly

    By
    Nathan Eddy
    -
    May 19, 2014
    Share
    Facebook
    Twitter
    Linkedin

      Projected cost increases for all types of medical plans are anticipated to continue the slow, steady declines experienced since 2010 by falling between 0.1 and 0.5 percent in 2014, according to a survey by Xerox subsidiary Buck Consultants.

      Health insurers reported an average prescription drug trend of 9.2 percent, a decrease of 0.7 percent from the prior survey.

      Meanwhile, pharmacy benefit managers, which the report noted do not generally take any underwriting risk, reported a weighted average trend factor of 4.1 percent, which is less than half of the factor reported by health insurers, but still up by 0.3 percent from the 3.8 percent reported in the prior survey.

      Overall, the survey, which also reported trend factors for dental and vision plans, found costs for Preferred Provider Organization (PPO), Point of Service (POS), High Deductible Health Plans (HDHPs) and Health Maintenance Organizations (HMOs) are projected to increase at rates that are lower than its recent prior surveys.

      “This may be a result of the economic slowdown and its impact on consumers’ willingness to seek medical treatment,” Harvey Sobel, FSA, a Buck principal and consulting actuary who co-authored the survey, said in a statement. “Even though the decline is good news, most plan sponsors still find 8-9 percent cost increases unsustainable.”

      As Sobel indicated, some survey respondents cited reduced utilization as the primary reason for the decrease in costs, which could be caused by uncertain personal financial circumstances.

      In general, trend factors provide for price increases that may result from such variables as inflation, utilization of services, technology, changes in the mix of services and mandated benefits.

      Health insurers use trend factors to calculate premium rates, and large self-funded employers use these factors to budget their future health care costs.

      The national survey of 126 insurers and administrators measured the projected average annual increase in employer-provided health care benefit costs. The insurers and administrators that provided medical trends for the survey cover a total of approximately 119 million people, the report said.

      “It’s too soon to tell the impact of public and private health exchanges on trend,” Daniel Levin FSA, a Buck principal and consulting actuary and another co-author of the report, said in a statement. “It may take another few years before we really know if (and by how much) the exchanges will ‘bend’ the cost curve.”

      The report also revealed that for plans that supplement Medicare, health insurers reported a trend of 5.5 percent excluding prescription drug coverage, up from 4.1 percent in the prior survey.

      However, Medicare supplement plans generally have lower trends than other medical plans due to the impact of federal controls on Medicare fees and the smaller increases expected in Medicare deductibles and co-pays, the study pointed out.

      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×