Third-quarter earnings reports from Cigna and a statement by a top WellPoint official suggest Americans are using less healthcare, according to a report by the Wall Street Journal Health Blog.
The decline may be caused by continued loss of jobs that had healthcare coverage, the end of generous federal COBRA subsidies and the growth of high-deductible health plans, which dampen utilization in the first three quarters but end the year with a utilization upsurge as members reach their deductible levels.
Reporting a 6.6 percent increase in profits over the same quarter last year, Cigna revised its forecast for medical cost growth this year from 8 percent to 7.5 percent. UnitedHealth Group earlier reported a 23 percent rise in third-quarter profits, partly because it gained members and grew business lines in pharmacy management and technology services.
Third-quarter results from Humana, WellPoint and Aetna are due next week, but Wellpoint's CFO reported lower healthcare utilization for his company to the Wall Street Journal in July. The article also noted numbers of visits to physicians has been generally down since 2009, citing a report by UBS Investment Research based on data from IMS Health.
While the trend to lower utilization may help slow healthcare inflation rates that were approaching the double digits, it could backfire if Americans cut back on wellness visits and immunizations, ending up with more expensive healthcare needs that could have been prevented.
Read the Wall Street Journal Health Blog report on healthcare utilization.
Read more coverage of healthcare inflation:
- Health Insurers Say Increased Pressure on Costs Means Tougher Talks With Hospitals
- Enrollment Figures for 5 Major Payors Reported: Significant 2009 Losses Seen, 2010 Viewed as Uncertain
The decline may be caused by continued loss of jobs that had healthcare coverage, the end of generous federal COBRA subsidies and the growth of high-deductible health plans, which dampen utilization in the first three quarters but end the year with a utilization upsurge as members reach their deductible levels.
Reporting a 6.6 percent increase in profits over the same quarter last year, Cigna revised its forecast for medical cost growth this year from 8 percent to 7.5 percent. UnitedHealth Group earlier reported a 23 percent rise in third-quarter profits, partly because it gained members and grew business lines in pharmacy management and technology services.
Third-quarter results from Humana, WellPoint and Aetna are due next week, but Wellpoint's CFO reported lower healthcare utilization for his company to the Wall Street Journal in July. The article also noted numbers of visits to physicians has been generally down since 2009, citing a report by UBS Investment Research based on data from IMS Health.
While the trend to lower utilization may help slow healthcare inflation rates that were approaching the double digits, it could backfire if Americans cut back on wellness visits and immunizations, ending up with more expensive healthcare needs that could have been prevented.
Read the Wall Street Journal Health Blog report on healthcare utilization.
Read more coverage of healthcare inflation:
- Health Insurers Say Increased Pressure on Costs Means Tougher Talks With Hospitals
- Enrollment Figures for 5 Major Payors Reported: Significant 2009 Losses Seen, 2010 Viewed as Uncertain