HI Claims Expected to Rise 10% in the Next 12 Months

In a survey of about 60 health organizations around the country earlier in the year, Aon Consulting, a subsidiary of insurance broker Aon Corp., found that insurers expect to pay out 10.7 percent more in claims for preferred provider organization, or PPO, managed care. Many factors contribute to the rising cost of providing insurance, including expensive medical treatment, health issues related to obesity and an aging population, the number of unemployed taking advantage of short-term benefits and the effect of the new health care law.

To combat this increase, insurers say they will negotiate better rates with providers and move towards having their accounts use select networks which provide high quality care at an efficient price. Some companies are even having their CFOs sit in on the provider negotiations.