TOPICS FOR TODAY’S SESSION• Healthcare cost trends• Reasons behind medical plan premium increases• Strategies to control costs• Open enrollment tips

11.9%

9.9%9.2% 9.0% 9.0%

8.5%7.5%

6.5% 6.8%6.2%

5.5%6.0% 6.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2006 2008 2010 2012 2014 2016 2018Source: PwC Health Research Institute

HEALTHCARE COST TRENDS

REASONS BEHIND MEDICAL PLAN PREMIUM INCREASES

• Normal inflation• Increased Rx costs• Demographics and health

• Government regulation• Consumer demand• New medical technology

• Premium shift to employees

• Claim cost share shift to employees

• Consumer Directed Health Plan (CDHP)

• Wellness programs

COST CONTROL STRATEGIES

• Spousal surcharge• Dependent eligibility audit• Telehealth or virtual office visit• Member education

COST CONTROL STRATEGIES (CON’T)

OPEN ENROLLMENT TIPS VIDEO

• Healthcare cost trend has slowed down, but it’s outpacing general inflation

• Cost increases are affected by a variety of factors

• Employers have several options to control costs

• Annual open enrollment is a great time review strategy and re-educate your employees and their dependents

KEY POINTS TO REMEMBER