Health Plans Expect Premium Rates to Increase by 7.5% in 2015

PHILADELPHIA--()--Health plans that participated in Sherlock Company’s Twentieth Annual Health Plan Pricing Survey anticipate premium rates to increase by 7.5% before the effect of buy-downs. An 11.4% increase in employee contribution in copayments and other benefit design changes is also expected.

We received a total of 70 responses for a response rate among 330 plans of approximately 21.2%.This is a poll of premium rate increases; accordingly, it excludes the self-insured market. Also, we have specifically excluded the individual market since its trend could be distorted by the Exchanges. Thus, this poll primarily reflects trends in the middle and small group market.

This survey is of particular interest since it is the first year in which the Affordable Care Act is fully implemented. Also, the survey is of health insurers as opposed to the employer sponsors and is therefore a somewhat unusual perspective.

Additional detail is available to participants in the survey and to subscribers to PULSE. In addition, we also report premium increases after the effect of buy-downs, trends in medical costs and each of these factors (as well as the premium increase before buy-downs) by geographic region.

The cost to subscribe is $375 annually. Please contact sherlock@sherlockco.com or 215-628-2289 if you are interested in subscribing.

Sherlock Company (www.sherlockco.com), based in North Wales, Pennsylvania, provides informed solutions for health plan financial management. Since its founding in 1987, Sherlock Company has been known for its impartiality and technical competence in service to its clients.

Contacts

Sherlock Company
Douglas B. Sherlock, CFA
215-628-2289
sherlock@sherlockco.com

Contacts

Sherlock Company
Douglas B. Sherlock, CFA
215-628-2289
sherlock@sherlockco.com