Increases in health care costs are slowing but will still grow more than 10 percent in the coming year, according to a report from Aon Consulting Worldwide.

The consulting division of Chicago-based Aon Corp. (NYSE: AOC) surveyed more than 70 leading health care insurers, representing more than 100 million insured individuals, and found that health care costs are projected to increase 10.6 percent for HMOs, 10.5 percent for POS plans, 10.7 percent for PPOs and 10.5 percent for CDH plans. The increases are projected to happen during the 12-month rating periods that started in April and end in September.

The increases are down slightly from a year ago and are the lowest since the study began in 2001, Aon Consulting says.

"Unlike some other health care trend surveys, Aon Consulting's survey reports the expected future increase in employer-provided health plan claims cost before any plan changes, based on the opinions of health plan actuaries," says Bill Sharon, senior vice president with Aon Consulting and director of the study. "We provide this trend data to help employers evaluate the competitiveness of health insurance premium renewals. For employers with self-funded health plans, this trend data helps them (and their actuaries) develop future claim estimates for budgeting purposes."

Sharon attributes the decrease in the medical trend rate to more employers and employees taking advantage of wellness, health promotion and consumer-driven programs.

"But more must be done to truly stem the tide of rising health care costs," he says. "This includes greater senior management support for these programs, better employee communications and more consistent cooperation from the medical community."

Aon says prescription drug costs are expected to increase 9.2 percent, which is slightly lower than the 9.5 percent trend rate one year ago. The specialty pharmacy trend rate is 12.2 percent, down from 15.1 percent in spring 2007.
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