Health Plans Expect Premium Increase of 8.0% in 2012, or 5.5% after Buydowns

PHILADELPHIA--(BUSINESS WIRE)-- According to Sherlock Company’s Seventeenth Annual Health Plan Pricing Survey, health plans are expecting premium rate increases in 2012 of 8.0%, a two percentage point decline from the 2011 expectation of 10.0%. After benefit buydowns, premium increases are expected to average 5.5% as compared with 7.0% expected last year.

These results reflect the projections of health plans serving approximately 30 million commercial members. Sherlock Company’s survey, conducted in September of 2011, included the results of 73 plans or 22.1% of health plans nationwide.

Medical trend is expected to be 8.8% in 2011, compared with 10.6% expected in 2011. Accordingly, the health benefit ratio is expected to increase by 0.6 percentage points. Results varied by region.

Additional information concerning the Seventeenth Annual Health Plan Pricing Survey is available from Sherlock Company.

Sherlock Company (, based in Gwynedd, Pennsylvania, provides informed solutions for health plan financial management. Since its founding in 1987, Sherlock Company has been known for its impartiality and technical competence in service to its clients.


Sherlock Company
Douglas B. Sherlock, CFA
[email protected]

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