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  • 2011 Benefit Plan Costs to Hold Steady

    A new study by The Segal Company reveals that the increases to health plan costs for the next year will not be as high as previously anticipated..  Their  14th annual survey of health plan cost trends  shows  that the 2011 rates for most benefit plan costs trends will hold steady compared to  2010 levels.

    “After several years of declining trends, it appears that 2008 was the bottom of a downward pattern, with cost trend rates returning to an upward direction in 2009,” states Edward A. Kaplan, senior-vice president and Segal’s national health practice leader.  He adds that “a  new, potentially short-term driver of health plan cost trend is the cost of compliance with the [Patient Protection and] Affordable Care Act. More than three-quarters of those we surveyed said that the Act’s impact would result in an increase in overall health plan trend of more than 1%”.

    The research shows the 2011 projected trend rates for preferred provider organizations (PPOs)/point-of-service (POS) plans are expected to hit 10.6%, compared to 10.5% in 2010.

    Please refer to the stuudy for details.

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