Healthcare premiums are up an average of 7.5% this year, identical to last year's increase, according to the fourth-annual Survey on Value in Health Care conducted by the Watson Wyatt Worldwide consulting firm and the Washington Business Group on Health.
Indemnity plans experienced the highest increase, 8%, while point-of-service plans and PPO rates rose 7% and HMOs' premiums increased 7.5%.
Survey respondents-293 employers and 587 health plans, provider networks and hospitals-blame an aging population, new pharmaceuticals and advances in medical technology for much of the cost escalation.
But 51% of the providers and 63% of the health plans say costs could be held flat next year or even reduced if excess capacity is trimmed, more partnerships with employers are established, care is more closely managed and other efficiencies are achieved.
