Health Care Costs Could Rise More Than Ten Percent in 2007

November 15, 2006

Health care costs could rise more than ten percent (10%) in 2007 unless companies change their plans, according to a report by PricewaterhouseCoopers.

Employers are already changing employees' benefit packages, shifting more costs to employees or pushing employees to participate in health and wellness programs, according to the report, based on a survey of health insurance carriers, the firm's own research and government data.

For 2007, costs for preferred provider organizations, are expected to rise 11.9%.  Costs for health maintenance organizations are expected to rise 11.8%.

Costs for consumer-driven plans, in which patients pay high deductibles, are offered a tax protected health savings account and take on more of the direct costs of their care, are expected to rise 10.7%.  Only 3 million Americans currently have such plans.

Actual premium increases could vary depending on changes employers make to their plans.  Both the government and employers are now asking consumers to should more responsbility for their own health and more of the costs of insurance in an attempt to curb rising spending levels.