Managed Care

 

Lowest health care cost increase since 2001 predicted for 2007

MANAGED CARE December 2006. © MediMedia USA
Managed Care Outlook

Lowest health care cost increase since 2001 predicted for 2007

MANAGED CARE December 2006. ©MediMedia USA













This year, U.S. companies experienced the lowest health care cost increase in eight years, with health care costs per person expected to increase from $7,744 in 2006 to $8,340 in 2007. The overall rate of the increase continues to be a major concern as it outpaces inflation and salary increases. That's according to a recent report by Hewitt Associates, which says average employee out-of-pocket costs, such as copayments, coinsurance, and deductibles, are also expected to increase from $1,489 to $1,627 in 2007.

If growth of health care costs is slowing down, the next question is for how long? Blaine Bos, a partner at Mercer Health & Benefits, says we shall soon "see how well the leading-edge strategies for longer-term cost management — care management and consumerism — are working."

Hewitt expects that preferred provider organizations will experience a 7 percent cost increase in 2007, and health maintenance organizations and point-of-service plans will see an 8 percent and 9 percent increase, respectively.

Average annual employee contributions and out-of-pocket costs

Costs by plan type

Source: Hewitt Associates

Meetings

Private Health Insurance Exchanges Conference Washington, D.C. October 7–8, 2014
National Healthcare Facility Management Summit Palm Beach, FL October 16–17, 2014
National Healthcare CFO Summit Las Vegas, NV October 19–21, 2014
National Healthcare CXO Summit Las Vegas, NV October 19–21, 2014
Innovative Member Engagement Operations For Health Plans Las Vegas, NV October 20–21, 2014
4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014