Tuesday, July 25, 2006
2007 Projection - Positive Trends
Early studies from Hewitt and Milliman are estimating a average rate increase of 10 percent for 2007, about 1% lower than 2006. While this is certainly positive, increasing health insurance costs are still outpacing by a wide margin.
In 2004, CDHPs accounted for just 1% of total premiums for health care, he says. That grew to 2.5% of the total a year later. “Are you going to see it double again?” Proebsting asks. “I think it’s unlikely. But you are going to see growth in the higher single digits.”Whild CDHP's are certainly not a silver bullet for our healthcare woes, it is a promising approach. Once Hewitt's and Milliman's entire studies are made public it will be interesting to see how popular CDHP's actually are and whether or not they are contributing to the positive changes in the trend line.