October 4, 2013 (PLANSPONSOR.com) – A survey indicates the impact of the Patient Protection and Affordable Care Act (PPACA) on health benefit plan costs will be low.
The 2014 Segal Health Plan Cost Trend Survey, Segal Consulting’s 17th
annual survey of managed care organizations, health insurers, pharmacy benefit
managers and third-party administrators (TPAs), found that, when
asked about the impact of the PPACA on costs, two-thirds of respondents
projected a cost increase of 1% or less due to the loss of grandfathered status
(i.e., group health plans in existence as of March 2010, when the PPACA became
law, which remain largely unchanged), with another one-quarter of respondents
predicting that the loss of grandfathered status will be cost neutral.
Only 6% of respondents anticipate that implementing
preventive care coverage for plans that lost their grandfathered status under
the PPACA will result in a cost trend increase of more than 3%.
According to the survey, plan sponsors must be ready to
implement new requirements introduced by the act and determine their impact
on plan costs. Plan sponsors will also need to play an active role to continue
to get the most for their benefit dollars.
The survey also found that 2014 is expected to show the
slowest growth for health benefit plan costs in 14 years.
The survey was conducted during May and June. More
information about it can be downloaded from here.