Medindia LOGIN REGISTER
Medindia
Advertisement

Milliman Survey Indicates Lower Health Insurance Rate Increases

Thursday, July 31, 2008 General News
Advertisement
SEATTLE, July 30 Preliminary results from Milliman's 2008Group Health Insurance Survey indicate premium rate increases continue toexceed the government's official rate of inflation but are lower than premiumincreases in recent years. The 2009 estimated January renewal increases of8.5% for Health Maintenance Organizations (HMOs) and 9.4% for PreferredProvider Organizations (PPOs) continue a trend toward lower increases sincepeaking at 16.1% in 2002. This marks the sixteenth year that Milliman hasconducted the survey.
Advertisement

The Milliman survey is unique in that it asks HMOs and PPOs to respondregarding a given set of benefits and demographics. The survey removes threeimportant factors that can skew the results of other health cost surveys:differences in benefit design, cost sharing levels and member demographics.
Advertisement

Doug Proebsting, co-author of the report, notes that "Possiblecontributing factors to the rise in healthcare costs beyond the average rateof inflation (excluding aging and benefits) include increasing consumer demanddue to direct to the consumer marketing and the availability of medicalinformation on the internet. Rising rates of chronic conditions (likeobesity, diabetes and asthma), new technology, specialty drugs, a move awayfrom traditional managed care (such as preauthorization and closed networkproducts), cost shifting impact from government healthcare programs and theuninsured, and the recent surge in building new hospitals also may contributeto the rise." On the other hand, Proebsting noted, "Potential factorscontributing to the deceleration in recent rate increases include addedconsumer cost awareness as evidenced by higher use of generic drugs, lowerutilization within HSA high deductible plans, and an economic downturn thatmay leave less money available for discretionary care for some people."

The survey was sent to the nation's HMOs and fully insured PPOs that servethe commercial, large and mid-group employer market. These results arepreliminary; Milliman will continue collecting data for the 2008 Group HealthInsurance Survey through the summer months. About 40% of all eligibleinsurers typically participate. Final results will be published in October.

The October report will include premium rates and trends for medical andprescription drugs. Milliman will also report hospital inpatient cost andutilization data, physician reimbursement levels, medical expense ratios andprofit levels. Results will be provided by metropolitan area, state, regionand nationwide. Results for HMOs and PPOs will be shown separately. Thesurvey will also include information on prescription drug claim costs, premiumdifferences due to deductible levels, growth in consumer-driven healthcare,broker commissions, and the implementation of ICD-10 codes.

Milliman is among the world's largest independent actuarial and consultingfirms. Founded in Seattle in 1947 as Milliman & Robertson, the companycurrently has 48 offices in key locations worldwide. Milliman employs overtwo thousand people, with a professional staff of more than a thousandqualified consultants and actuaries, including specialists ranging fromclinicians to economists. The firm has consulting practices in healthcare,employee benefits, property & casualty insurance, life insurance and financialservices. Milliman serves the full spectrum of business, financial,

government, union, education and nonprofit organizations. For furtherinformation, visit www.milliman.com.Contact: Doug Proebsting Christopher Wanta Milliman (262) 784-2250 Jim Loughman Milliman (203) 698-0008

SOURCE Milliman
Sponsored Post and Backlink Submission


Latest Press Release on General News

This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close