Segal Health Plan Cost Trend Survey Finds High Rx Cost Trends Projected to Be Lower for 2018

Reversing a Multi-Year Pattern, Modest Increases in Medical Cost Trends Projected

Health plan cost increases continue to outpace general inflation and average wage increases, underscoring the need to monitor performance targeting cost-management efforts. Plan sponsors can use the 2018 Segal Health Plan Cost Trend Survey results to support their 2018 rate renewal negotiations and their budget projections.

Other key findings include:

  • Prescription drug (Rx) benefit plan cost trends are projected to be less severe for 2018.
  • Medical plan trends are projected to be slightly higher than 2017 projections.
  • Rx trends for actives and early retirees are expected to remain in the double-digits, continuing to be much higher than medical trends.
  • Price inflation — not utilization — is the leading driver of trend.
  • Rx cost-management strategies and improved vendor contracting are plan sponsors’ top priorities.

The 2018 Segal Health Plan Cost Trend Survey is the 21st annual survey of managed care organizations, health insurers, pharmacy benefit managers and third-party administrators conducted by The Segal Group of which Sibson Consulting is a member.

Download the report to learn more about the trends and what cost management strategies can be used to address them.

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