SilverLink - Winter 2008 - (Page 25)

eMPloyee Benefits Group Benefits Medical Trend Stopping the Upward Spiral by Scott Simon, GBA, MBA Healthcare costs continue to rise rapidly in the United States and throughout the world. Recent trend studies indicate that total U.S. healthcare expenditures are projected to increase from $2.17 trillion in 2006 to $2.88 trillion in 2010. Health spending in the U.S., at about 16% of the Gross Domestic Product (GDP) in 2006, will grow to nearly 20% by 2017. That’s right—20 cents of every dollar spent in the United States will be health-related! 2. Changes in utilization or changes in the volume of services used as a result of health status, demographics, advertising and the use of new technology Government cost shifting away from entitlement programs like Medicare/Medicaid toward the private sector Deterioration of benefit plans as a result of deductibles/ copayments remaining unchanged, despite the rise in inflation and medical costs New technology and medical procedures 3. 4. What is Medical Cost Trend? For the private sector, medical trend can be defined as the direction in which medical costs are moving. It is influenced by several factors: 1. Medical inflation, or the change in the unit price of medical products and services 5. 25 silverlink — Winter 2008

Table of Contents Feed for the Digital Edition of SilverLink - Winter 2008

SilverLink - Winter 2008 Contents Risk Management: Where in the World is Human Resource Consulting? Workers’ Compensation Rate Declines Insurance Certificates Haute Retirement It All Began with a Cup of Coffee Playing Fair in the Housing Market Captives 101 Proceed with Caution Fore! (Or is it Pull? or Giddyup?) Don’t Be Fuelish Employee Benefits: Medical Trend Countdown to Compliance Private Client Services: Buy & Sell Agreements Flood Insurance Pushing Wealth to the Next Generation Client Spotlight: Travel and Transport Internal Happenings: SilverStone Group Giving Back Since 1945

SilverLink - Winter 2008

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