Premiums for HMOs rose 6% from 2005 to 2006, the smallest change since 1997, and PPO premiums increased a modest 4%, according to the Milliman 2006 Group Health Insurance Survey. For 2007 renewals, HMOs anticipate the book-rate premiums to increase 10 to 11%, while PPOs anticipate premiums to increase 12 to 13%, although actual rate increases will differ based on group experience, contract negotiations, changes in cost sharing, and market conditions. HMO and PPO survey respondents reported that hospital inpatient costs per admission increased about 8%, while professional fees increased about 5% for HMOs and 9% for PPOs, according to 2005 and 2006 data. (Download a summary of the survey findings.)
The survey also indicates that 97% of HMOs and PPOs plan to offer employers a consumer-directed health product within the next year, although growth of CDH products has been slower than respondents predicted in prior years. The vast majority of plans either currently or will provide within the next year provider quality information and treatment option information. But those sharing hospital and physician services pricing information has stalled around 50%.
