Wednesday November 22, 2017

Health Plans project 7.2% group and 21.2% individual premium increases

Doug Sherlock, CFA, President, Sherlock Company

Doug Sherlock, CFA, President, Sherlock Company

Sherlock Company's twenty-third annual survey of health plan premium pricing trends found that plans "are expecting 2018 premium rates to increase by 7.2% for Group Commercial plans, while growing by 21.2% for Individual Commercial Plans. For Group plans, this growth is 0.3 percentage points higher than their expectations for last year. For Individual plans, growth expectations are lower by 1.1 percentage points. Medicare and Medicaid membership is excluded from these trends.....Anticipated premium rate increases after the effect of buy-downs for Group and Individual plans is 5.6% and 18.2%, respectively. A buy-down is a change in a product's benefit design to achieve a lower premium.... We estimate an increase in consumer cost sharing to be 9.7% for Group plans and 26.0% for Individuals."

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