Medical Cost Trends in 2018
Summary
The wave of growth in affordable health plans with low premiums and high deductibles is expected to plateau. In 2018, these factors will place both upward and downward pressures on employer healthcare costs, with changes in payment models playing a key role in the medical sector. It is projected that in 2018 medical costs will continue to grow faster than the GDP and take up an even bigger share of the economy. On the other hand, it will lead to increasing dissatisfaction with low-premium health plans that entail a high deductible and force consumers to forgo services such as preventive healthcare. In 2018, therefore, businesses will need to tackle medical costs in the new health industry landscape with a focus on both the price of services as well as utilization rate.