Segal Survey Predicts Declines in Trends for Fifth Consecutive Year

    NEW YORK, Sept. 19, /PRNewswire/ -- The 2008 Segal Health Plan Cost
 Trend Survey forecasts continued declines in trends for 2008, marking the
 fifth consecutive year of declining medical trends. And, although a growing
 number of health plans project single-digit trends for 2008, health plan
 costs trends are still significantly above general inflation. Key findings
 include:
      -- Over the past five years, projected trend rates for point-of-service
         (POS) medical plans (including prescription drugs) for actives and
         retirees under 65 has declined from a high of 14.9% in 2003 to 10.5%
         for 2008.
      -- Prescription drug projected trends have declined dramatically, by
         nearly nine percentage points, since their high of 19.5% in 2003.
   www.segalco.com/publications/surveysandstudies/2008trendsurveysupplement.pdf
      -- Price inflation appears to be the biggest element of overall medical
         plan trend, accounting for approximately 60% of overall projected
         preferred provider organization (PPO) trend in 2008.
      -- The survey found some regional variation in medical trend projections
         - ranging from a low of 9.4% in the Midwest to a high of 11.7% in the
         West.
     The 2008 Segal Health Plan Cost Trend Survey compares historical
 forecasts to actual cost increases. The Survey reports projections for 2008
 obtained from a survey of managed care organizations, health insurers,
 pharmacy benefit managers and third party administrators. The survey also
 covers trend rates for PPOs and HMOs, Medicare Advantage plans, dental and
 vision care plans.
     According to Edward A. Kaplan, Segal's National Health Practice Leader,
 "The most successful plan sponsors are examining detailed claims data to
 determine what diseases, conditions, facilities and treatments are driving
 cost increases. Then they are using integrated data mining to develop
 targeted intervention strategies to identify gaps in needed treatment for
 participants, poor quality health care delivery to participants and ways
 they can improve the health and health care consumption of their
 participants and reduce health trends to manageable levels."
     The complete survey report can be found at:
     www.segalco.com/publications/surveysandstudies/2008trendsurvey.pdf
     The Segal Company (www.segalco.com) is an independent, US-based firm of
 benefit, compensation and human resources consultants. Clients include
 corporations, non-profit organizations, professional service firms, state
 and local governments and joint boards of trustees administering pension
 and health and welfare plans under the Taft-Hartley Act.
     Contact:
     Mary L. Feldman
     (212) 251-5029
     mfeldman@segalco.com
 
 

SOURCE The 2008 Segal Health Plan Cost Trend Survey