Reports and Surveys | October 12, 2020
The current public health crisis has made understanding the factors influencing health plan costs and trends even more important for plan sponsors.
The data in this report helps you put in context the effectiveness and impact of your plan designs. It also proves invaluable as you calculate your upcoming plan budgets and negotiate rate renewals.
Projected medical plan cost increases for 2021 are similar to projections for 2020. This contrasts with last year’s survey, which reported a slowdown in medical trend projections. Other findings in this year’s survey include:
COVID-19 has caused unexpected disruption in our healthcare system and strained the healthcare ecosystem. Healthcare providers, carrier, and institutions will be looking for ways to offset anticipated financial losses. Plan sponsors hoping to avoid potential cost shifting must vigilantly monitor carrier policies and provider performance and pursue targeted cost-management strategies.
Plan sponsors continue to use various cost-management strategies to help mitigate increasing health plan costs. We asked survey participants to rank the top strategies being used by group health plans in 2020. The chart below compares the top five strategies being used today to last year’s ranking.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.
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