From the summary:
Increases in Medical and Prescription Drug Costs Projected to Be Lower for 2019
Medical and prescription drug cost trends, for both actives and non-Medicare retirees, are projected to be lower in 2019 than in previous years.
That’s the headline finding from Segal’s 2019 Health Plan Cost Trend Survey, which surveyed more than 100 managed care organizations (MCOs), health insurers, pharmacy benefit managers (PBMs) and third-party administrators (TPAs).
Other Key Findings
– Medical plan cost trends are projected to be lower than 2018 projections.
– Actual medical and prescription drug trend results for 2017 were significantly lower than carrier projections for 2017.
– Actual prescription drug plan cost trends for 2017 were the second lowest in the last 13 years.
– Price inflation continues to be the primary driver of overall medical and prescription drug cost trends.
– Network physician reimbursement rate increases are projected to increase by less than 2 percent for both primary care and specialists, below overall CPI rates.
– Prescription drug cost-management strategies and improved vendor contracting are still plan sponsors’ top priorities.