Key findings

Key findings

Double-digit growth prevailed when HRI made its first projection of healthcare spending a decade ago. Much has changed: once a big investment, technology has paid off in the savings from virtual care; employees once insulated from out-of-pocket costs have become savvy consumers, and retail style new entrants have contributed to the New Health Economy.

Three factors “deflate" medical cost trend in 2016:

  • Looming “Cadillac tax” accelerates cost shift
  • Virtual health becomes a valuable tool for primary care
  • New health advisers steer consumers to more efficient healthcare

Two factors “inflate" medical cost trend in 2016:

  • Speciality drugs fill the FDA pipeline
  • Cyber security protection adds a new layer of expense

HRI issues its projection for the coming year’s spending growth based on activity in the market that serves employer-based insurance—a projection that has become a key ingredient in setting insurance premiums for the past decade. 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 PwC’s 2016 Touchstone Survey of more than 1,000 employers from 35 industries.

Key Findings