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Article: Abating health care costs keep rate hikes in single digits; Cost-shifting, insurer profits and health promotion programs slowing increases to about 7% to 9.(Spotlight: Midyear Market Report)
- Article from:
- Business Insurance
- Article date:
- July 4, 2005
- Author:
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Byline: JERRY GEISEL
Health care plan cost increases are continuing to ease, with average rate hikes in 2006 likely to be in the range of 7% to 9%, marking the first time in about half a decade that typical rate increases will not go into double-digit territory.
Cost increases first began to moderate this year, after several consecutive years of accelerating rates. In 2005, rate hikes generally were in the range of 10% to 12%, a decline from the 15% to 20% rate increases that were common in 2003 and 2004.
Now, with two consecutive years of slowing rate hikes, experts believe the era of double-digit health care plan inflation is over, at least ...