Xerox's 32nd National Healthcare Trend Survey revealed healthcare costs decreased to 8 percent, down from 11.6 percent in 2010, according to Employee Benefit Adviser.
Here are five observations:
1. Even though healthcare costs have declined, the number still significantly exceeds the inflation rate of 1.4 percent.
2. Due to this cost and inflation gap, employers are placing more of the cost on employees.
3. Diagnostic tests and treatments, unfavorable reimbursements, required coverage, more administrative costs and up-front medical technology costs are all pushing medical costs higher than inflation.
4. Prescription drug costs are also not catching a break, with the rate spiking to 8.8 percent, up from 6.7 percent in 2010.
5. Industry experts note the cost of specialty drugs, increased use of lifestyle-improving pharmaceutical products and increase in the number of expenses of compound pharmaceuticals are all contributing to this increase in prescription drug costs.