HealthExecWire

Employers: 2013 Health Plan Costs, Trends & Strategies

Slower growth in healthcare costs could be the ‘new normal’ as long-term trends could keep cost increases in check. As employers shift expenses to their employees, for example, these workers are pursuing lower-cost alternatives. Even as the economy strengthens, changes in behavior by employers and consumers may help limit medical growth.

Health Research Institute (HRI) of PwC US explores the leading cross currents likely to shape medical cost trend next year. One of two factors expected to “inflate” the trend in 2013 is an uptick in the consumption of healthcare as newly hired workers obtain coverage and patients who postponed elective procedures feel more confident about spending. Medical and technological advances that provide more specialized, sophisticated and expensive treatment also are expected to push up overall healthcare spending.

Four factors HRI expects will “deflate” the medical cost trend in 2013 are: Market pressure to reduce medical supply and equipment costs; increased popularity of new methods to deliver primary care; increased availability of comparative cost information; and accelerated savings from the pharmaceutical patent cliff.

In this session, PricewaterhouseCoopers' Michael Thompson and Jack Rodgers expand upon significant research findings from two major PwC studies: the 2013 PwC Health Research Institute Behind the Numbers Report and PwC’s 2012 Touchstone Health and Well-being Employer Survey. The speakers will then offer resulting PwC insights on emerging megatrends for employer health strategy over the next 3-5 years.

The PwC 2013 Behind the Number Report indicates that U.S. employers can expect to see healthcare costs rise by 7.5 percent in 2013, compared with an increase of 8.5 percent in 2012, according to the annual Behind the Numbers report on medical cost trends, published by PwC’s Health Research Institute. The projection continues a pattern of slower medical growth, a reflection of the sluggish economy, increased focus on cost containment by the industry, lower use of services by cost-conscious patients and efforts by employers to hold down expenses.

According to the PwC 2012 Health and Well-Being Touchstone Survey employers are focused on two primary strategies to control medical costs in 2013: increasing the employee share of costs and expanding health and wellness programs. The survey also showed that plan design features with the most significant changes in 2012 were a considerable increase in in-network deductibles, emergency room co-payments and prescription drug co-payments.

This event provides stakeholders - including employers, health plans, providers and pharmaceutical companies - the opportunity to not only possess cutting-edge data on a spectrum of employer health plan benefit issues, but also gain key specific insights into how employers are positioning themselves strategically for incremental changes in the short term and more transformational changes over the next five years.

Participants will be able to:

Identify emerging megatrends for employer health strategy over the next 3-5 years
Explore PwC research data findings from the Behind the Numbers 2013 Medical Cost Trend Report and the 2012 Touchstone Health and Well-being Employer Survey
Consider the implications for Employers and other applicable stakeholders regarding PwC research findings
Understand the primary deflators and inflators driving current medical cost trends
Examine the range of actions and changes employers are undertaking or planning in regard to the health benefit environment
Engage in interactive learning through online question submission, attendee feedback and opportunity for follow up questions, and networking with attendees, faculty and other professionals through dedicated LinkedIn group