PPO Escalator Clause Directly Attributable to Medical Trend Factor

Employer-sponsored medical plan costs expected to rise 8.4 percent…………..Cost of health care is essentially static but the cost of health insurance is not thanks to escalator clauses (Escalator Clauses, Rising Prices, And Why We Should Care) found in all managed care contracts guaranteeing pay raises  every year for most medical caregivers…………..

Why on earth do plan sponsors continue to rely on managed care contracts they cannot see nor audit yet continue to complain about rising health insurance costs? Their answer –  Blame consumers, cost shift to plan members and continue to use PPO networks………………..

EMPLOYER -SPONSORED MEDICAL PLAN COSTS EXPECTED TO RISE 8.4%

Costs for employer sponsored-medical plans in 2018 could increase by nearly triple the projected rate of inflation, as global risk factors such as high blood pressure, physical inactivity and obesity increase.

By Katie Kuehner-Hebert | December 18, 2017 at 06:27 AM | Originally published on Benefitspro.Com

Costs for employer sponsored-medical plans in 2018 are likely to rise 8.4 percent – nearly triple the projected rate of inflation, as global risk factors such as high blood pressure, physical inactivity and obesity increase, according to Aon’s report, “2018 Global Medical Trend Rates.” (RISKMANAGERS.US: Status quo proponents blame rising costs on consumers rather than on what is really driving cost increases………..)

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