2016SegalHealthPlanCostTrendSurvey(PDF).PDFVIP

P r a c t i c a l R e s e a r c h f o r M u l t i e m p l o y e r P l a n s Summer 2015 2016 Segal Health Plan Cost Trend Survey Health benefit plan cost trend rates for 2016 will increase for most medical plan options and increase substantially for prescription drug coverage to double-digit rates, according to forecasts compiled in the 2016 Segal Health Plan Cost Trend Survey. Trend is the forecast of annual gross per capita claims cost increases. (The text box on page 4 provides a more detailed description of trend.) The survey captured data on trend projections for large group health plan sponsors before any plan changes. This is Segal’s nineteenth annual survey of managed care organizations (MCOs), health insurers, pharmacy benefit managers (PBMs) and third-party administrators (TPAs). (See the last page for a list of survey participants.) “ Health benefit plan cost trend rates for 2016 will increase for most medical plan options and increase substantially “ for prescription drug coverage to double-digit rates. Benefit Trend Projections for 2016 Projected Medical Trends for Actives and Retirees Under Age 65: 2015 and 2016 10.4% Key findings illustrated in the 9.9% adjacent graph: 7.9% 8.0% 7.8% 7.8% 8.0% • Medical trends are projected to range 7.5% from a low of 6.8 percent for HMOs to 6.8%