Report: healthcare costs to rise 10.5 percent in next 12 months

Healthcare costs will be on the rise in 2010, according to a new survey released by Aon Corporation, a leading risk management provider.

Healthcare costs will be on the rise in 2010, according to a new survey released by Aon Corporation, a leading risk management provider.

According to the survey, which contacted more than 60 health insurers representing over 100 million clients, costs for health care will average an increase of 10.5 percent in the next twelve months. More specifically, costs for HMOs, POS plans, PPOs and CDH plans will average percent increases of 10.4, 10.4, 10.7 and 10.5 respectively.

The survey also found that health care costs for retirees over the age of 65 would also increase 6.6 percent for Medicare Supplement plans and 7.3 percent for Medicare Advantage plans.

"While we're seeing a slight decrease in the trend rates, it's still at double digits, and this year, it's compounded by a struggling economy, lower wage increases, and in some cases, salary freezes," said John Zern, the U.S. Health and Benefits director for Aon.

Aon's survey is the second in recent weeks to project a grim future regarding health care costs. An August study by The Commonwealth fund found that health care premiums for families projected to nearly double from $12,298in 2008 to $23,842 in 2020 if no reforms were adopted by the government.

Aon conducts its health care trend survey twice a year to forecast the expected changes in health plan claims costs to "help employers evaluate the competitiveness of health insurance premium renewals" and develop future claim estimates for their budgets, according to the corporation's website.

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Posted: August 26, 2009

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