Tuesday, August 29, 2006
Tweet[IWS] Segal: 2007 Health Plan Cost Trend Survey [25 August 2006]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Segal
2007 Segal Health Plan Cost Trend Survey [25 August 2006]
http://www.segalco.com/corporate/pub-corporate.cfm?ID=673
The Segal Companys tenth annual survey of managed care organizations (MCOs), health insurers, pharmacy benefit managers (PBMs) and third party administrators (TPAs) forecasts continued declines in trends for 2007. Despite this projected deceleration, medical and prescription drug plan costs are expected to outpace general inflation and wage increases significantly.
The following are some of the notable findings from this years survey:
* All medical plan types are forecasted to see cost increases in 2007 that are more than twice the consumer price index and the annual increase in real average weekly earnings.
* For the first time in several years, trends for prescription drug coverage are projected to decelerate in 2007 to levels that are close to trends for medical coverage.
* Compared to trend rates for retail prescription drug coverage, prescription drug mail order trend rates are projected to decrease at least three percentage points for both actives and retirees in 2007.
* Very similar 2007 trend rates are forecasted for preferred provider organizations (PPOs) and health maintenance organizations (HMOs): 11.6 percent and 11.1 percent, respectively. However, projected increases for high-deductible PPOs are expected to be higher: 12.0 percent.
* The survey found some slight regional variances that suggest regional providers pay be able to negotiate deeper discounts in their local markets than can national providers.
The report of results of the 2007 Segal Health Plan Cost Trend Survey includes four tables of data and seven graphs. It also examines the accuracy of trend projections. The report concludes by discussing a three-pronged strategy for managing health care costs.
To request the survey report, click on the underlined text below. If you prefer to receive a PDF version of this publication via e-mail, please let us know in the comment area of the form.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Segal
2007 Segal Health Plan Cost Trend Survey [25 August 2006]
http://www.segalco.com/corporate/pub-corporate.cfm?ID=673
The Segal Companys tenth annual survey of managed care organizations (MCOs), health insurers, pharmacy benefit managers (PBMs) and third party administrators (TPAs) forecasts continued declines in trends for 2007. Despite this projected deceleration, medical and prescription drug plan costs are expected to outpace general inflation and wage increases significantly.
The following are some of the notable findings from this years survey:
* All medical plan types are forecasted to see cost increases in 2007 that are more than twice the consumer price index and the annual increase in real average weekly earnings.
* For the first time in several years, trends for prescription drug coverage are projected to decelerate in 2007 to levels that are close to trends for medical coverage.
* Compared to trend rates for retail prescription drug coverage, prescription drug mail order trend rates are projected to decrease at least three percentage points for both actives and retirees in 2007.
* Very similar 2007 trend rates are forecasted for preferred provider organizations (PPOs) and health maintenance organizations (HMOs): 11.6 percent and 11.1 percent, respectively. However, projected increases for high-deductible PPOs are expected to be higher: 12.0 percent.
* The survey found some slight regional variances that suggest regional providers pay be able to negotiate deeper discounts in their local markets than can national providers.
The report of results of the 2007 Segal Health Plan Cost Trend Survey includes four tables of data and seven graphs. It also examines the accuracy of trend projections. The report concludes by discussing a three-pronged strategy for managing health care costs.
To request the survey report, click on the underlined text below. If you prefer to receive a PDF version of this publication via e-mail, please let us know in the comment area of the form.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 9:27 AM
