Insurance hikes projected to be less significant

Posted on: Monday, April 09, 2012

A new study may provide relief for health leads who worry they may not be able to afford the growing cost of insurance coverage.

According to Buck Consultants, costs for all types of medical insurance plans are anticipated to rise by less than 10 percent this year. While this may seem like a lot, the firm says it's the first time since 2001 that cost increases have been projected to be under 10 percent.

Daniel Levin, a Buck consultant and director of the survey, elaborated on why the cost increase has moderated.

"The reduced trend factors reported in our survey reflect that health insurers, who may have previously added margins to account for health care reform benefit changes mandated for 2011, have now removed those margins for 2012 projections," said Levin. "The reduction also reflects lower expected costs as a result of the economic slowdown."

He added that unlike previous reports, the reduction in insurance hikes is expected to be broad-based, rather than varying depending on the plan or network a policyholder has.

This is good news for insurance agents as well, as they may be able to point their insurance customers toward additional savings options.

Posted In: Insurance News, Health Insurance

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