The cost of supplying healthcare services always changes. There are expenses like surgical costs that tend to increase due to the more expensive medical facilities and technologies being used by doctors. On the contrary, there are expenses like durable medical equipment that decrease due to less expensive materials. The yearly changes in healthcare costs are known as “trends”. Care providers, employers, policyholders and insurance providers experience these trends impacts and these are the total cost changes throughout the industry of healthcare.
Trend impact varies
It’s true, the impact of this trend varies by geography; however, the manner it impacts the employers doesn’t vary at all. All over the healthcare industry, trends allow it. Two employers in the same geography can go through the same yearly trends, even with occupational profiles that differ with each other. It happens because this healthcare trend is the anticipated change in claim cost before any employer initiatives, like the programs in health and productivity and the changes in plan design. The following can drive increases and decreases in trends.
What drives trend increases and increases?
- healthcare service utilization
- variations in providing treatment patterns
- price deflation or inflation
- aging of the insured population
- advancement in drug therapies and medical technology
- changes in federal or state legislation
- Significance of trends
Probably, you have observed some in the listed items which are out of employer’s control. Because of these, it’s important to do a couple of things.
First, it’s essential to learn and examine the industry trend’s history and future condition, including the trends and changes particular to the clients. While price deflation and inflation impacts every employer without bias, demographics and employee aging will differ by group.
Second, strategies designed to counteract the healthcare cost trend impact, should be implemented and developed. Although the cost-shifting can be helpful in minimizing cost, it won’t counteract the long-term trends. Therefore clients need effective strategies to maintain the larger picture in the mind. The goal of a healthcare strategy is to maintain the wellbeing of employees, give benefits about employee’s value, and create long-term sustainable costs.
Average trends in 2016
While the trends in medical cost will continue to improve, there will be an increase of drug prescription cost trend in 2016. The major cause of this increase is the usage and cost of specialty drugs. The dichotomy between drug and medical trends has caused drugs to have increased in proportion of the total healthcare expenses. The employer’s plan for the prescription drug component continues to obtain higher scrutiny from diverse clients.
To get more information about Healthcare trend projections in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.