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Employers Face 10.5 Percent Health Care Cost Increases, Says Aon Consulting
Date:8/25/2009

CHICAGO, Aug. 25 /PRNewswire-FirstCall/ -- Health care costs are expected to increase on average 10.5 percent in the next 12 months,(1) according to Aon Consulting, the global human capital consulting organization of Aon Corporation (NYSE: AOC).

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Aon Consulting surveyed more than 60 leading health care insurers, representing more than 100 million insured individuals, and found that health care costs are projected to increase by 10.4 percent for HMOs, 10.4 percent for POS plans, 10.7 percent for PPOs and 10.5 percent for CDH plans. These are slightly lower than one year ago, when HMO cost increases were 10.6 percent and POS plans were 10.5 percent. PPOs and CDH plans remain steady at 10.7 percent and 10.5 percent, respectively. (See below for trend data from Aon Consulting's prior health care surveys.)

"Aon Consulting conducts a health care trend survey twice a year to forecast the expected future increase in employer-provided health plan claims cost, before any plan changes, based on input from leading health plan actuaries," said John Zern, Aon Consulting's U.S. Health & Benefits Practice director. "This data helps employers evaluate the competitiveness of health insurance premium renewals. For employers with self-funded health plans, it helps in developing future claim estimates for budgeting purposes.

"While we're seeing a slight decrease in the trend rates, it's still at double digits
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SOURCE Aon Corporation
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