2007 Health Cost Rate Hikes Continue at Double-Digit Clip

April 19, 2007 (PLANSPONSOR.com) - The most popular kinds of workplace health coverage are expected to continue to see double-digit cost increases in 2007, according to a new insurer and administrator survey.

According to a news release from Buck Consultants, 2007 costs for the most popular plans continue to increase by more than 10%, similar to trends reported in Buck’s previous survey the year before. The latest poll analyzed responses of more than 70 health insurers, HMOs and third-party administrators.

The expected 2007 rate of increases for each coverage type and the percentage change from 2006 are:

  • Preferred Provider Organization (PPO)
    10.6% -0.3% from 10.9%.
  • Point-of-service (POS)
    10.6%, -0.2% from 10.8%.
  • Health Maintenance Organization (HMO)
    11.1%, +0.3 from 10.8%.
  • High Deductible Consumer Driven
    11.1%, +0.1 from 11%.

Health insurers reported an average prescription drug trend of 11.3%, down from 11.4% reported in the prior survey. This is considerably higher than the 5.2% reported by pharmacy benefit managers.

The Buck survey is available for $100 from Buck’s Global Survey Resources, 500 Plaza Drive, Secaucus, NJ, 07096-1533 or at 800-887-0509.