Report: Medical Costs to Rise 9% Next Year
Published On: June 19th, 2009
Medical costs will grow at a slightly slower rate next year — but the growth will still outpace inflation and workers’ pay, according to a new report from the health wonks at PricewaterhouseCoopers.
The medical cost trend — the measure insurers use to change premiums based on the cost and intensity of health care provided to each person — is projected to grow at 9% next year, down from 9.2% this year and 9.9% last year, the report says.
The estimate is based on interviews with health-plan executives, surveys of employers and hospital-based health plans and analyst reports. Forty-two percent of the employers surveyed said they planned to increase employees’ share of health care costs.
The report says health reform isn’t likely to have much of an effect on health costs until 2011 or later. It also notes that the recession affects overall health costs in multiple ways, many of them contradictory. For example, some people are postponing elective procedures, while others who think they may be laid off are rushing to use their employer-sponsored health insurance.
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Report: Medical Costs to Rise 9% Next Year
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