Are Your Clients Seeing a Trend?

Medical cost trend is the projected percentage increase in the cost to treat patients from one year to the next, assuming benefits remain the same. Insurance companies use this projection to calculate health plan premiums for the coming year.

What does all of this mean to you and your clients?

This is the first of a series of emails aimed to bring awareness that as first-dollar medical costs continue to increase, the rise can have a significant impact on Stop Loss claims, driving up the premium for Stop Loss coverage.

We’ve sourced and are breaking down the story across three industry views so you can up your knowledge game and share these findings with your clients.

What Are the Projected 2022 Health Plan Cost Trends? Segal
Behind the Numbers PwC Health Research Institute
Leveraged Trend HM Insurance Group

For this edition, we delve into page 5 of the Segal survey. Read on and be on the lookout for more on Trend to hit your inbox in the coming weeks!

Segal highlights the following contributors to trend:

New treatment, therapies and technologies

Provider cost shifting from reduced payment by Medicare and Medicaid

Leveraging effect of fixed deductibles and copayments

Provider price increases

Increased demand from increased health risks due to an aging population or rise in obesity

Greater emphasis on detection and diagnosis

For reporting purposes, Segal shares that trend does not include the impact of Pharmacy Benefit Management rebates.

READ FULL SEGAL SURVEY

Contact me, or your Crum & Forster representative, to learn more about Trend and Employer Stop Loss.

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