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Segal Survey Predicts Declines in Trends for Fifth Consecutive Year
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| Copyright: | PR Newswire | | Source: | PR Newswire | | Wordcount: | 385 |
NEW YORK, Sept. 19, /PRNewswire/ -- The 2008 Segal Health Plan Cost Trend
Survey forecasts continued declines in trends for 2008, marking the fifth
consecutive year of declining medical trends. And, although a growing number
of health plans project single-digit trends for 2008, health plan costs trends
are still significantly above general inflation. Key findings include:
-- Over the past five years, projected trend rates for point-of-service (POS) medical plans (including prescription drugs) for actives and retirees under 65 has declined from a high of 14.9% in 2003 to 10.5% for 2008. -- Prescription drug projected trends have declined dramatically, by nearly nine percentage points, since their high of 19.5% in 2003. www.segalco.com/publications/surveysandstudies/2008trendsurveysupplement.pdf -- Price inflation appears to be the biggest element of overall medical plan trend, accounting for approximately 60% of overall projected preferred provider organization (PPO) trend in 2008. -- The survey found some regional variation in medical trend projections - ranging from a low of 9.4% in the Midwest to a high of 11.7% in the West.
The 2008 Segal Health Plan Cost Trend Survey compares historical forecasts
to actual cost increases. The Survey reports projections for 2008 obtained
from a survey of managed care organizations, health insurers, pharmacy benefit
managers and third party administrators. The survey also covers trend rates
for PPOs and HMOs, Medicare Advantage plans, dental and vision care plans.
According to Edward A. Kaplan, Segal's National Health Practice Leader,
"The most successful plan sponsors are examining detailed claims data to
determine what diseases, conditions, facilities and treatments are driving
cost increases. Then they are using integrated data mining to develop targeted
intervention strategies to identify gaps in needed treatment for participants,
poor quality health care delivery to participants and ways they can improve
the health and health care consumption of their participants and reduce health
trends to manageable levels."
The complete survey report can be found at:
www.segalco.com/publications/surveysandstudies/2008trendsurvey.pdf
The Segal Company (www.segalco.com) is an independent, US-based firm of
benefit, compensation and human resources consultants. Clients include
corporations, non-profit organizations, professional service firms, state and
local governments and joint boards of trustees administering pension and
health and welfare plans under the Taft-Hartley Act.
Contact: Mary L. Feldman (212) 251-5029 mfeldman@segalco.com
SOURCE The 2008 Segal Health Plan Cost Trend Survey
CONTACT: Mary L. Feldman of The Segal Company, +1-212-251-5029, mfeldman@segalco.com
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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