New Survey Finds Decrease in Growth Rate of Health Care Costs

The "2014 Segal Health Plan Cost Trend Survey" reports that: 

"Health benefit plan cost trend rates show the slowest growth in 14 years of trend forecasts, according to data compiled in the 2014 Segal Health Plan Cost Trend Survey, Segal Consulting's seventeenth annual survey of managed care organizations, health insurers, pharmacy benefit managers and third-party administrators. Trend is a forecast of per capita claims cost increases that takes into account various factors, such as price inflation, utilization, government-mandated benefits, and new treatments, therapies and technology. Although there is usually a high correlation between a trend rate and the actual cost increase assessed by a carrier, trend and the net annual change in plan costs are not the same. Changes in the costs to plan sponsors can be significantly different from projected claims cost trends, reflecting such diverse factors as group demographics, changes in plan design, administrative fees, reinsurance premiums and changes in participant contributions."

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