Employers’ Health Insurance Cost Increases May Be Easing

Employers may be seeing some small relief on their health care premiums as rates have not increased as substantially as they have in the past, according to a survey from Aon Consulting.

Aon Consulting, a subsidiary of Chicago-based insurance broker Aon Corp., said from a survey of 70 major health care insurers representing more than 100 million insured individuals, it projects that health care costs over the next 12 months will increase an average of 10.6 percent. This is slightly less than the 11 percent increase projected last year.

By medical plans, Health Management Organizations are expected to rise 10.6 percent this year, compared to a 10.9 percent increase in the spring of last year. Point of Service plans are expected to rise 10.5 percent compared to 10.8 percent last year. Preferred Provider Organizations are expected to see a 10.7 percent increase, a 0.5 point decrease over year’s 11.2 percent. Consumer-driven health care plans dropped from 10.7 percent last year to 10.5 percent.

Bill Sharon, senior vice president with Aon Consulting and director of the study, observed that the decreases in medical trend rates could be attributed to more employers and employees taking advantage of wellness, health promotion and consumer-driven programs.

“But more must be done to truly stem the tide of rising health care costs. This includes greater senior management support for these programs, better employee communications and more consistent cooperation from the medical community,” he said in a statement.
Aon Consulting's U.S. health and benefits practice director, John Zern, said of the results: “While the medical trend rate is still more than twice the consumer price index, it is encouraging to see that health care cost rate increases are continuing to slow down. This is a step in the right direction for companies nationwide that continue to feel significant health care price pressures.”