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PwC forecasts that preferred provider organizations, health maintenance organizations, point of service plans and exclusive provider organizations will see a 9.9% average spike in price next year, while consumer-driven health plans are looking at a 7.4% increase. In 2007, PPOs witnessed an 11.9% price increase, while HMOs, POS plans and EPOs jumped 11.8%, and CDHPs climbed 10.7%. PwC notes it is too premature to study the long-term impact of consumer-driven health plans, but preliminary data suggests that their cost trend is running 2.5% points below cost trends for HMOs and PPOs.
PwC cites less drug spending, health care consumerism and wellness initiatives as key factors as to why the cost increases are in the single-digits.
"Unfortunately, health care costs continue their upward trajectory, and the annual increase is reason for concern by all Americans," says Jack Rodgers, managing director of the health policy economics group at PwC. "But we're seeing that the trends behind the numbers are positive. The growth rate has started to decline and is running nearly parallel to the overall rate of inflation."
