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Health Insurance Premium Growth Slows for Fourth Straight Year
Date:9/11/2007

Kaiser Family Foundation: Premiums increased at slowest rate since 1999

WASHINGTON, Sept. 11 /PRNewswire-USNewswire/ -- Health insurance premiums increased at the slowest pace in eight years, marking the fourth consecutive year premium increases have declined, according to a new report released today.

Published by the Kaiser Family Foundation and Health Research and Educational Trust, the Employer Health Benefits 2007 Annual Survey found that health insurance premiums increased by 6.1 percent in 2007.

"Health insurance plans' focus on prevention and wellness, disease management, tiered prescription drug plans and other innovative tools continue to mitigate the rising cost of medical care," said Karen Ignagni, President and CEO of America's Health Insurance Plans.

A PricewaterhouseCoopers' report, The Factors Fueling Rising Health Care Costs 2006, credited tiered prescription drug formularies as "one of the most striking reasons" prescription drug cost growth has declined in recent years.

"Today's report shows that the country is taking steps in the right direction on health care costs," Ignagni said. "Further progress is within reach if policymakers allow more flexible benefit designs; give patients and doctors information on the safety, efficacy and cost-effectiveness of prescription drugs, medical devices and procedures; and reform the broken medical liability system."

The full survey can be found on the Kaiser Family Foundation Website at: http://www.kff.org/insurance/7672/upload/EHBS-2007-Full-Report-PDF.pdf

The Factors Fueling Rising Healthcare Costs 2006 is available at:

http://www.pwc.com/extweb/pwcpublications.nsf/docid/BB82984D3A7DF2A48525726700 3C98BC

AHIP is the national trade association representing nearly 1,300 member companies providing health insurance coverage to more than 200 million Americans.


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SOURCE America's Health Insurance Plans
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