The outlook for benefit cost increases for 2009 may not be as grim as first anticipated.

A recent report found some encouraging trends that may carry over to your health plan renewals:

• point-of-service medical plans without prescription drugs, for active employees and retirees under the age of 65, have declined from 13.7% in 2003 to a projected 10.4% for 2009
• prescription drug trends for active employees is predicted to fall to 9.8% in 2009, down from 2001’s high of 19.7%, and
• trend rates for hospital services are expected to be 10.9% in 2009.

Bottom line: Steering employees toward these cost-effective services and encouraging participation in wellness programs can help to reduce your premium increases.