Healthcare DIVE September 11, 2020
Dive Brief:
- COVID-19 is throwing a serious wrench in employer efforts to calculate their 2021 medical cost trend, according to a new report from financial services company Credit Suisse.
- Usually, companies base their forecasts on prior-year historic data. But now, only about 60% of employers are using their actual 2020 claims experience, while making adjustments to try to normalize for the effect of the pandemic. Another 26% are formulating expected medical costs for next year based on 2019 data, and not even using data from this year to set rates. Another 9% are using data from the first two months of 2020, in a bid to eschew COVID-19 abnormalities altogether.
- Employers also vary widely in forecasts for how COVID-19...
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