The consulting company the Segal Group took a look at what employers can expect from the Affordable Care Act in 2015. Here are the conclusions of the Segal Group’s 18th annual Health Plan Cost Trend Survey:
• Cost increases for group and pre-Medicare retiree coverage will be between 6.2% and 10.4% depending on the type of plan.
• Prescription cost coverages will be higher by an average of 8.6%
• Last year it was 6.3%.
Edward Kaplan who runs the firm’s health practices said, “New specialty drugs coming onto the market and price increases for brand-name drugs are the main forces driving prescription drug plan cost trends. Typically, less than 1% of all prescriptions are specialty drug medications, yet these drugs now account for more than 25% of total prescription drug cost trends. The projected specialty drug/biotech trend rate for 2015 is an exceptionally high 19.4%.”
These are the trends Segal listed in the report. They are for 2015 and are compared to 2014:
| || 2015||2014|
Preferred Provider Organizations
Point of Service
Health Management Organizations
High Deductible Health Plans
Prescription Drug Carve-Out
Caps for out-of-pocket expenses — says the Segal report — will drive the medical benefit costs up 1% and prescription drug coverage costs by 1.5%.