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2016 Medical Cost Trends and Implications: PwC Research Behind the Numbers
PwCs Health Research Institute (HRI) projects U.S. medical inflation will dip to 6.5 percent in 2016, capping a ten-year trend of slowing employer medical cost-trend growth in the employer-sponsored market.  It is critical for stakeholders positioning themselves for 2016 and beyond to consider and address the associated trends and implications are shaping the New Health Economy.

Despite the year-over-year slowdown, HRI also reported that medical inflation still outpaces general inflation, underscoring the challenges ahead for the health industry. After accounting for likely changes in benefit design, such as higher deductibles and narrow networks, HRI projects a net growth rate of 4.5 percent in 2016.

Each year, PwC's HRI provides estimates on the growth of private medical costs over the next year and what the leading drivers of that shift are expected to be. Insurance companies use medical cost trend to help set premiums by estimating what the same health plan this year would cost the following year. In turn, employers use the information to make adjustments in benefit design to help offset cost increases.

In compiling data for 2016, HRI interviewed industry executives, health policy experts, and health plan actuaries whose companies cover a combined 100 million members. HRI also analyzed results from PwCs 2016 Touchstone Survey of more than 1,000 employers from 35 industries.

Please join us Wednesday, July 15th, 2015 at 2:00 PM Eastern as Benjamin Isgur, Director of PwC's Health Research Institute takes us behind the numbers to examine employer 2016 medical cost trends and implications for stakeholders. He will discuss in detail PwC research findings, expand on individual factors that will "deflate" and inflate components of the medical cost trend for 2016, and address strategic implications for health plans, providers, employers, consumers and other stakeholders.  Click here for detailed information and to register or call 209.577.4888.
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