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PwC Predicts Historically Low Growth in Health Care Spending


May 31, 2012 --- Health care spending in the U.S. is expected to grow at a historically low rate of 7.5% next year. ---

Medical cost trends help insurers and large employers set premium rates, according to the annual Behind the Numbers report, published by the Health Research Institute (HRI) of PwC US. For U.S. employers, the net impact of next year’s increase could be as low as 5.5%, after accounting for changes in benefit design by purchasers, HRI estimates.    

Employers are looking at two strategies to control medical costs in 2013: increasing the employee share, and expanding health and wellness programs, according to the PwC 2012 Health and Well-Being Touchstone Survey of 1,400 employers in 34 industries. The survey also showed that plan design features with the most significant changes in 2012 were a substantial increase in in-network deductibles, emergency room copayments and prescription drug copayments.    

Highlights include: 

  • Nearly six in ten employers (57%) are considering raising employee contributions to health plans; 
  • Half of employers are considering increasing cost-sharing through plan design, such as higher deductibles; 
  • More than half of employers are considering raising prescription drug plan costs; 
  • Average enrollment in high-deductible plans coupled with a health reimbursement account has increased, to 43.2% in 2012, from 34.2% in 2010; and 
  • Nearly three quarters of employers (72%) offer wellness programs, and half of those say they are considering expanding those programs next year. 
 

 

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