Accompass’s annual Guide to Insurer Health Trends captures the average group insurer health trend factor (the year-over-year cost increase or decrease) for 2018 and provides insight into what’s driving this factor up.
According to The Guide, this year, insurers on average, have indicated an overall health trend factor of 11.8%, which is consistent with the 11.7% seen last year.
Does this mean that employee benefit plan administrators will need to factor in this level of cost inflation into their own plans? Accompass President, Sarah Beech is quick to point out that this percentage should be viewed as a baseline only.
“11.8 is the average among insurers, but your own cost trend will be unique to your organization and situation,” Beech notes.
“There are many elements affecting your own trend factor,” she adds. “For instance, did you see a spike in a specific claim over the last year or has there been a legislative change that could affect costs?”
So, while it appears that carriers agree on the nature of rising costs in group health, each employer will see their own unique health trend factor.
The Guide continues to discuss the trends pushing this increase up, cost management and that while there are certain trends pushing this increase up, there are a number of developments that are having a positive impact as well.
For more information download the full Guide here.