The rate of increase for healthcare costs has slowed across multiple categories like medical and prescription drugs, according to a study conducted by New York-based integrated human resources consulting firm Buck.
The company's 43rd National Healthcare Trend Survey identifies trend factors used by health insurers and third-party administrators to project employers' future healthcare costs, according to a Sept. 15 news release. It includes 100 health insurers and health plan administrators covering over 100 million plan participants.
Harvey Sobel, a Buck principal and consulting actuary, said that healthcare claims spiked in 2021 due to residual demand from COVID-19.
"While a temporary reduction in trends is welcome, activity is projected to normalize in 2022. Health plans will be under pressure to increase provider reimbursement rates in reaction to the rise in inflation as their provider contracts come up for renewal," Mr. Sobel said.
Key findings from the report:
- Health insurers and administrators reported medical trend factors that vary by product, averaging 5.8 percent to 6.9 percent, down by 1-2 percentage points from the prior survey.
- The average trend factor for the popular preferred provider organization plan was 6.4 percent, down from 7.8 percent reported in the 42nd survey.
- This trend-factor slowdown in the current year is impacted by higher-than-normal healthcare activity in the prior year due to demand from COVID.
- The trend factor for plans that supplement Medicare was 5.6 percent, up from 5.0 percent in the prior year. This follows 6 consecutive increases from 3.0 percent reported in 2018.
. - Health insurers reported a weighted average prescription drug trend of 8.1 percent, representing a steady decline from 9.3 percent in the 41st survey and 8.8% in the 42nd survey.
- The weighted average trend reported by pharmacy benefit managers increased from 6.2 percent to 7.5 percent.