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We are committed to providing our clients and website visitors with the most up-to-date information about trends in the health insurance industry. Our monthly newsletters will keep you informed on the issues that affect you most, including news and information about employee benefits, group health insurance and invidividual insurance policies and plans.
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Expected Slowdown in Cost of Healthcare for 2009
Marking the 6th consecutive year of slowing price rises, the 2009 Segal Health Plan Cost Trend Survey forecasts continued declines in health care cost trends for 2009. Most trend rates are projected to be lower in 2009 than in 2008, but cost trends for all medical plan types are higher than inflation.

U.S. health care costs are expected to increase on average 10.6 percent over the next 12 months, according to an annual study by Aon Consulting Worldwide. This represents the lowest increase since the study began in 2001, with cost rises remaining in double-digits but slightly lower than one year ago.

The survey of more than 70 leading health care insurers, representing more than 100 million insured individuals, forecasts that from September 2008 through September 2009:

• For health maintenance organizations (HMOs), costs are projected to increase by 10.6 percent (down from 10.9 percent one year earlier).

• For point of service (POS) plans, costs are projected to increase 10.5 percent (down from 10.8 percent),

• For preferred provider organization (PPO plans), costs are projected to increase 10.7 percent (down from 11.2 percent).

• For consumer-directed health (CDH) plans, costs are projected to increase 10.5 percent (down from 10.7 percent).

The survey reports the expected increase in employer-provided health plan claims cost before any plan changes, based on the opinions of health plan actuaries.

Stephen Miller is an online editor/manager for SHRM.
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