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Health
Care Costs Rocket Employees
Vs. Employers
New
Workforce Offerings
HR
TECHNOLOGY SAVES MONEY <
Perfect
Storm strikes CEO's
FAQs
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Aon
Survey: Health Care Costs Will Continue
Double-Digit Increasess"
From
the INSURANCE-LETTER for Wednesday, June
26, 2002
HMOs Trend Higher than POS, PPO Plans,
According to Major Health Care Providers.
CHICAGO--(BUSINESS WIRE)--June 25,
2002--Companies will continue to face
health care cost increases in the
double-digits, according to an Aon survey
of major health care providers. The
forecast, released today, may serve as a
call-to-action for companies to more
efficiently spend their health care
dollars.
Based on data provided by the nation's
largest medical, dental, Pharmacy Benefit
Manager (PBM) and vision vendors, Aon has
found that HMOs (Health Maintenance
Organizations) are expected to raise
costs, on average, 16.2 percent for 2003
renewals. This marks a continuing shift
in the landscape of health care plans -
HMOs historically have not shown the
increases of other types of plans, such
as PPO (Preferred Provider Organizations)
and POS (Point Of Service) plans.
"The HMO may still be the best
option for some organizations," said
Bill Sharon, senior vice president with
Aon Consulting. "However, as they
are negotiating with carriers, companies
need to be certain that they are looking
at a variety of options to provide the
best and most cost-effective coverage for
their employees."
In brief, the forecast for medical plan
increases is as follows: -- HMO: With
Prescription drugs (Rx) - 16.2 percent,
Without Rx - 14.6 percent. -- POS: With
Rx - 16.0 percent, Without - 14.6
percent. -- PPO: With Rx - 16.0 percent,
Without - 14.5 percent. -- Indemnity:
With Rx - 18.3 percent, Without - 17.1
percent.. --
The Aon study also found that pharmacy
plans are expected to rise at a 17.8
percent clip. Dental plans all fall below
10 percent, with Dental HMOs only
expected to increase by 4.4 percent.
Vision plans are forecast to rise 3.2
percent. Twice a year, Aon surveys major
providers of medical, dental, pharmacy
and vision plans. Figures provided by the
companies are aggregated and represent
national averages as forecast by Aon.
Results of specific companies may vary.
The study is available at www.aon.com.
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