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What Would Happen to the Growth of Employers’ Health Benefit?

The expected increase of medical cost trend in 2019 is about 6 percent. The same change as it is in 2018.

Every year the health plan cost of the employers, changes by a certain percentage, but for the past few years, it remained intact.

Medical cost trend is a statistical representation of the expected increase in the cost of treating patients every year, given that the benefits they are getting have not changed. The change in the trend is due to the variation in prices that concerns medical products, services, and medicine. It is also due to the change in the number of services used.

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For the past seven years though, there was a change in medical cost, ranging from 5.5 percent to 7 percent. Nonetheless, the percentage stabilized around 6 percent in 2018 and expected to stay the same in 2019.

According to pwc.com, the consistent growth of medical cost trend between 5.5 percent and 7 percent is unsustainably high.

In a survey conducted by PwC, earlier this year, it shows that employers expected a 6.2 percent increase in the medical cost plan before the plan changes. But, other employers have expected a different change. In the aspect of small employers, they have expected an 8 percent increase. While, for large employers, they expected about 5.1 percent increase.

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After the plan changes, their expected increase had also changed. For employers, it went down to 3.5 percent. For small employers, it changed to 4.9 percent. And for the large employers, it decreased to 2.9 percent.

For younger employees, medical benefits are not as important as their compensation. According to employers, the number one reason why people wants to apply for their company is that of the salary they might get upon working there.

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