CHICAGO—Healthcare costs for employer-sponsored health plans are expected to increase by more than 10% in 2010, according to a survey
of more than 60 health insurance companies.
Aon Consulting, surveyed plans serving more than 100 million insured individuals.
"While we're seeing a slight decrease in the trend rates, it's still at double digits, and this year, it's compounded by a
struggling economy, layoffs and salary freezes or reductions," says Tom Lerche, healthcare practice leader for Aon Consulting.
In addition, there are increases in demand for services, medical technology costs, hospital costs, price and utilization of
prescription drugs, and medical malpractice costs, alongside poor lifestyle choices and an aging population. THREE WAYS TO SHAPE PLANS
Because the spiraling cost trend for the next 12 months is expected to increase 10% or more, plan sponsors are focused on
tactics and strategies to reduce medical trend to mid- to low-single digits.
"Given the financial pain on both companies and employees from the recession, employers are re-examining changes in health
plan options, plans design, and clinical solutions which may have been rejected in 2008," Lerche says. "In particular, employers
are conducting audits to saving money in the short run and designing and implementing wellness strategies for long-term impact."
According to Lerche, there are three ways most plan sponsors may shape their plan offerings for 2010:
- Accept the higher costs because employees have already seen layoffs and reductions in pay and benefits;
- Ask workers to pay more; or
- Examine the effectiveness and efficiency of current health plan offerings and make a decision to drop certain offerings in
2010.
Additionally, prescription drug cost increases are expected. The Aon survey projects drug costs will increase 9.3% in 2010,
slightly lower than the 9.4% trend rate one year ago.
