TORONTO: ñ ACS/Buck, one of Canadaís leading human resource and benefits consulting firms, released survey findings today indicating continued double-digit cost increases in 2007 for prescription drugs, medical plans, and hospital coverage in Canada. The 2007 ACS/Buck Canadian Health Care Trend Survey, the firmís seventh annual study, analyzed responses from 11 insurers - representing approximately 91% of the Canadian group insurance market.
Although the 2007 cost increase for prescription drugs (14.26%) dropped slightly from 14.31% last year, prescription drug costs still represent the largest portion of employer health care costs. Future costs may be affected by Cancer Care Ontarioís recent recommendation to allow hospitals to administer, at the patientís expense, intravenous (IV) drugs that are not covered by the provincial formulary due to their cost.
ìEmployers should plan now to address the expected increases over the next five to ten years,î said Larry Jackson, Senior Benefit Consultant in the ACS/Buck Health and Welfare consulting practice. ìFor example, plan sponsors should carefully review their coverage commitment to employees, and their insurerís policy with respect to the payment of claims for IV drugs. This will help ensure employers are not inadvertently paying for new expensive IV drugs that are supposed to be covered by provincial formularies under the Canada Health Act.î
The overall health care trend (including prescription drugs, medical plans, hospital coverage, and dental care) increased to 13.33% for 2007 from 13.20% in 2006. The cost increase for medical plans alone (excluding prescription drugs) has risen to 13.43% for 2007 from 12.52% in 2006.
ìOur survey results show a stabilization in the rate of total health care cost increases in Canada,î said Jackson. ìHowever, we still expect benefit plan costs to increase at a greater rate than other business costs. Canadian employers need to control this cost of human capital through longer-term wellness strategies and plan design changes in the shorter term.î
Conducted in December 2006, the ACS/Buck Canadian Health Care Trend Survey summarizes the trend factors used by major Canadian group insurers and Blue Cross agencies to project future health care plan costs for calendar year 2007. The survey compares current trends to results for the previous four years. The study provides trend factors by type of coverage: medical plans, hospital, prescription drugs, and dental care. Trend factors for each benefit are segregated into utilization and inflation components (except for dental care).
The complete survey report is available at the link at
here, or visit www.acsbuckcanada.com and click on Publications > Surveys.
ACS/Buck provides a full range of human resource consulting and administration services, and has been providing HR consulting and actuarial services in the Canadian marketplace for more than 35 years. Our Canadian suite of services includes Health and Welfare Consulting, Total Benefit Outsourcing services for traditional and flexible group benefit plans, Capital Accumulation Plans, and Defined Benefit pension plans, Retirement Consulting (including actuarial services and tax and legal consulting), Investment Consulting, and Communications Services. News and other information about ACS/Buck is available at www.acsbuckcanada.com.
ACS, a global FORTUNE 500 company with 58,000 people supporting client operations reaching 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The Companyís Class A common stock trades on the New York Stock Exchange under the symbol ìACS.î ACS makes technology work. Visit ACS on the Internet at www.acs-inc.com.
The statements in this news release that do not directly relate to historical facts constitute ìforward-looking statementsî within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Companyís control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Companyís prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.
ACS/Buck Canadian Health Care Survey Finds Cost Increases Continue
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