HR Specialist: Compensation & Benefits

In-depth strategic advice for designing, developing and maintaining compensation and benefit programs that attract and retain talent and make our readers’ organizations the employer of choice.  HR Specialist: Compensation and Benefits guides professionals through their often-confusing and shifting legal and regulatory responsibilities while contributing to – rather than detracting from – the organization’s financial goals.  Learn more about HR Specialist: Compensation and Benefits and the six free reports you'll get when you subscribe...

Health care costs are expected to increase on average 10.6% in the next 12 months, the lowest percentage increase since 2001. That’s what Aon Consulting Worldwide found when it surveyed more than 70 health care insurers, representing more than 100 million insured individuals.

Health care costs are projected to increase by:

• 10.5% for point-of-service plans
• 10.5% for consumer-driven health plans
• 10.6% for health maintenance organizations
• 10.7% for preferred provider organizations

Across the board, those trend rates are slightly lower than one year ago.

Prescription drug costs are expected to increase 9.2%, which is slightly lower than the 9.5% trend rate one year ago.

In addition, health care rate increases for retirees over age 65 are projected to be 7.3% for Medicare Supplement plans and 7.7% for Medicare Advantage plans.

Advice: Use this data to evaluate the rate quotes you receive from insurance providers or your broker. If you have a self-funded health plan, use it to develop future claim estimates for budgeting purposes.