Double-digit health cost hikes ahead; Aon Consulting study sees average increases over 10% in all plan types.(News)(Survey)

Business Insurance, June, 2007 by Wojick, Joanne

Byline: JOANNE WOJCIK Health care costs are expected to increase at double-digit rates for the 12-month rating periods beginning between April 2007 and September 2007, according to a new survey by Aon Consulting, a unit of Chicago-based Aon Corp. The survey of more than 70 medical, dental, pharmacy and vision plan vendors projects increases averaging 10.9% for health maintenance organizations; 10.8% for point-of-service plans; 11.2% for preferred provider plans; 12.7% for indemnity plans; and 10.7% for consumer-driven health plans.

"Employers are still challenged by the fact that health care cost increases are more than four times general inflation rates,'' said Bill Sharon, senior vp with Aon Consulting and director of the study, in a statement. "For...

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