Becker's Healthcare June 27, 2019
As health insurers begin filing their proposed premium rates for 2020, there are five key forces driving rate changes, according to the American Academy of Actuaries.
When developing premiums, actuaries base proposals on medical claims and administrative costs for pools of groups or individuals purchasing health insurance. These rates can be affected by laws and regulations, unit costs, intensity of services and more.
According to the American Academy of Actuaries, there are five key premium drivers for 2020:
1. Underlying growth in healthcare costs: The projected increase in costs of medical services and prescription drugs for 2020 is set to be in line with 2019, which ranged from roughly 5 percent to 8 percent.
2. Recent and ongoing policy changes:...
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