Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Health Insurance > Life Insurance Strategies

Buck: High-Deductible Plans See Conventional Cost Trends

X
Your article was successfully shared with the contacts you provided.

Underlying U.S. health care cost trends for commercial health plans are continuing to rise more than 10% per year.

Researchers at Buck Consultants, New York, have published that conclusion in a summary of results of an informal survey of 70 health insurers, health maintenance organizations and benefit plan administrators.

The participating organizations provide health coverage for 58 million members of employer-sponsored health plans.

Preferred provider organization plans dominate the employer health plan market.

Costs now are going up an average of about 10.9% at the participating PPOs, down from an average increase of 12.7% a year ago, Buck researchers report.

The average reported increase for the current year was about the same for point-of-service plans and HMOs.

Although advocates of high-deductible health plans say combinations of HDHPs and health savings accounts or health reimbursement arrangements can rein in increases, the average increase at the participating HDHPs was 11%, or about the same as the increase for conventional PPO plans.

The prescription drug cost trend increase has fallen to 8.2%, from 11.1% a year ago, Buck researchers report.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.