Survey suggests health costs to rise. (Short Takes).While health care inflation may have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. in 1996, there's some evidence that an uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in the inflation rate could be in store. A recent survey of large employers found that the cost of their health benefit plans is expected to increase about 4 percent on average in 1998, up from 3 percent in 1997. The Towers Perrin Towers Perrin is a global professional services firm. It was established 1 March 1934 as Towers, Perrin, Forster & Crosby. The umbrella name of Towers Perrin was adopted in 1987. 1998 Health Care Cost Survey was conducted in November. Participants were asked to report their 1997 and 1998 per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. premium costs for insured health and dental plans, and premium equivalents for self-insured plans. Commenting on the study, William J, Falk, a Principal in Towers Perrin's Chicago office, said, "The survey confirms what we've been hearing from many local markets around the country in recent months--that increases in the cost of employer-provided health care coverage will be somewhat higher in 1998 than in recent years." Falk continues, "Most of our survey respondents expect even faster cost growth in 1999." The survey found that managed care plans continued to hold significant cost advantages for employers and employees, both in terms of cost and the rate of increase in plan costs. While some employers reported sharp increases for some managed care plans, managed care plans on average appeared to be helping employers control cost growth better than indemnity plans indemnity plan, n 1. a plan that provides payment to the insured for the cost of dental care but makes no arrangement for providing care itself. 2. in 1998. In looking ahead, Falk said, "It remains to be seen whether the 1998 cost increases represent merely a short-term adjustment as major managed care plans try to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. some of their recent losses or the beginning of a new inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. cycle in health care costs." Falk predicted though that a return to double-digit cost increases would be unlikely anytime soon. He believes that employers have worked too hard introducing managed care and refining employee benefit strategies to let that happen. James A. Hawkins is Publisher of Healthcare Briefings, a newsletter available in print, on cassette, via fax, and on computer disk. He can be reached at 800/338-5486. |
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