Health Costs Continue Double Digits

By Mark E. Ruquet

NU Online News Service, June 25, 11:26 a.m. EST?A poll of health care plan providers predicts that double-digit price increases can be expected to run through the later part of the year.

The biannual survey released today by Chicago?based insurance broker Aon found that medical plans will increase between 16 to 18 percent. According to the survey, which involved data reported by more than 20 plan providers, HMO's with prescription plans are predicted to increase by 16.2 percent and 14.6 percent for those without prescription plans.

Both preferred provider organizations and point of service plans with prescription plans are predicted to increase by 16 percent, and those without prescription plans will increase by more than 14 percent.

The survey says pharmacy plans are to rise 17.8 percent.

The survey reports a number of reasons given by the respondents for the upsurge in rates. They include the increased power of hospitals and doctors to negotiate payments, increased demand on services by an aging population, less control over services by the providers, and the increased use and price of prescription drugs.

Dental and vision plans will not see the same dramatic increases, according to the survey. Dental HMO's are predicted to increase by 4.4 percent, and dental PPO's should see a 7.6 percent increase. Vision will only rise by 3.2 percent.

Aon said in the survey that these results are only national averages and that individual plans may vary. The prediction covers May to September of 2002.

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Health Costs Continue Double Digits

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