Health insurance premiums for fully funded members are expected to rise 9.6% in 2010, compared to a 6.6% increase in 2009, according to a survey from Deutsche Bank, including benefit buydowns of 350 basis points in 2010 compared to 170 bps in 2009.* With costs expected to rise about 7% in 2010, it’s clear health plans are pricing to make up for recent poor performance and to get ahead of the additional costs associated with reform, Deutsche Bank analyst Scott Fidel notes. Aetna — which is trying to improve margins after a run of membership gains — has the most aggressive price hikes for 2010, the survey finds, with increases in the mid-to-high teens. United and WellPoint are also pushing through double-digit hikes, Fidel says. Cigna, meanwhile, appears to be pricing below trend and will likely gain market share, Fidel notes.
*Corrected (Jan. 7, 2010) to reflect that premium increases presented are after benefit buydowns.
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