Medicare Costs Trend Declines For First Time In 25 Years, Segal Survey Finds | national
NEW YORK – (BUSINESS WIRE) – October 5, 2021–
Segal, a leading employee benefits and HR consulting firm, released its 2022 Health Plan Cost Trends Survey, marking the 25th annual survey of health insurers, managed care organizations (MCOs), pharmacy benefit managers (PBMs) and third party administrators (TPAs). For the first time since the launch of the Segal survey, the trend costs of US health plans have fallen. While health plan cost trends have increased 5-7% each year for the past 10 years, open access PPO / POS plans have shown the actual trend to be -2.1% in 2020, although the forecast trend is 6.8%. This significant drop is due to the suspension and elimination of care due to COVID-19. However, most forecasters expect the cost trend increases to return to pre-COVID levels.
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Segal survey reveals dramatic drop in healthcare trend (Graphic: Business Wire)
The 2022 Segal Health Plan Cost Trends Survey includes trend forecasts for medical coverage, prescription drugs, dental and vision care and actual health cost trends based on the experience of group health plans. This survey of employer sponsored health plans is recognized as a highly definitive survey.
“This is the first time in 25 years of Segal’s trend survey that we’ve seen a negative trend in average plan sponsor costs. This is due to a significant drop in claims activity in the second quarter of 2020, as the COVID-19 pandemic has caused routine medical procedures to be halted to free up capacity, ”said Edward Kaplan, vice-president. Senior Chairman and Head of National Health Practice at Segal. “Elective surgeries didn’t really come back in full force until September 2020. We can expect 2022 to return to pre-pandemic cost trend levels.”
Cost adjustments for COVID-19 testing, treatment and vaccinations are not expected to increase significantly and are expected to have minimal impact on the 2022 numbers. In addition, the pandemic has dramatically increased the use of virtual care visits and emergency care facilities, drastically reducing emergency room (ER) visits, resulting in cost savings. The average cost of an emergency room visit can be around $ 1,900, while an emergency care facility visit is closer to $ 165.
“We expect emergency room visits to continue to be down from previous years as people have switched to using emergency care centers, which will continue to save money. health plans. There will also be a greater use of telehealth services, they are here to stay, ”said Eileen Flick, senior vice president, director of technical health services at Segal. “Americans are smarter about where they get services. This year has brought about dramatic changes in the delivery of health care.
Segal provides trusted advice that improves lives. Segal is a privately held benefits, human capital, communications, technology, insurance brokerage and investment consultancy with more than 1,000 employees in the United States and Canada. Segal, Segal Marco Advisors and Segal Benz are all members of the Segal family.
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CONTACT: Amira Rubin
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
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Copyright Business Wire 2021.
PUB: 05/10/2021 3:11 PM / DISC: 05/10/2021 3:11 PM
Copyright Business Wire 2021.