Rate of Increase Expected to Fall for Health Plan Costs

Survey shows health insurance companies expect plan costs to rise less quickly this year than last year.

Segal Consulting has released the results of a survey of health insurance companies. Conducted last year, the survey was designed to gauge insurers' expectations for health plan costs in 2014. It found that they're anticipating a reduction in the rate of increase for costs across all types of medical insurance plans.

The survey report provides a series of trend projections, which it derived by proportionally blending medical trends and prescription drug trends. (See Figure 1, below.) For health maintenance organizations (HMOs), non-Rx costs are expected to increase by 7.2 percent in 2014, vs. 8.2 percent in 2013. Fee-for-service (FFS)/indemnity plans are expected to increase more, but still less than last year: 10.4 percent without Rx, vs. 10.8 percent in 2013.

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