2005 Projected Increases for Employer Health Plans
A recent survey by Aon Corporation projects a 13.5 increase in health plan costs for employers in 2005. The survey results, available here, detail the breakdown of projected increases for HMO's, PPO's, POS's and indemnity plans. The survey also indicates projected increases for Consumer Directed Health Plans (CDHP's). Since it is projected that President Bush will promote CDHP's during his second term, we will likely see a change in participant spending patterns as more of the costs of health care are borne by plan participants. An interesting concern is whether participants will avoid medical care when the costs will initially come out of thier pockets, the result being more serious illnesses which could have been prevented earlier. Ultimately this could result in greater costs for insurers as they pick up the tab for more serious illnesses that develop as a result of a participant hesitating to seek medical care in the early stages of an illness. Only time will tell.
