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Benefits March 26, 2007
Canadian Rx Cost Hikes Still Lead Health Coverage Trends
March 26, 2007 (PLANSPONSOR.com) - A new Canadian
survey by ACS/Buck indicates continued double-digit cost
increases in 2007 for prescription drugs, medical plans, and
hospital coverage in that country.
Reported by Fred Schneyer
Although the 2007 cost increase for prescription drugs
(14.26%) dropped slightly from the 14.31% seen last year,
prescription drug costs still represent the largest portion
of Canadian employer health care costs, according to a news
release about the survey.
The overall health care cost trend (including prescription
drugs, medical plans, hospital coverage, and dental care)
increased to 13.33% for 2007 from 13.20% in 2006. The cost
increase for medical plans alone (excluding prescription
drugs) has risen to 13.43% for 2007 from 12.52% in 2006,
the survey said.
“Our survey results show a stabilization in the rate of
total health care cost increases in Canada,” said Jackson.
“However, we still expect benefit plan costs to increase at
a greater rate than other business costs. Canadian
employers need to control this cost of human capital
through longer-term wellness strategies and plan design
changes in the shorter term.”
The poll analyzed responses from 11 insurers representing approximately 91% of the Canadian group insurance market, the news release said. The complete survey report is available here .