CDHP CLAIMS COSTS TO RISE 10.5%, AON SAYS
Claims costs for consumer-directed health plans are expected to rise about 10.5% over the next 12 months, virtually identical to an overall increase in healthcare costs of 10.6%, according to an Aon Corp. (Chicago) survey of more than 70 leading health plans representing 100 million lives.

UNION PACIFIC HAS HIGH HSA PENETRATION
Union Pacific Railroad (Omaha, NE) had 5600 HSA plan enrollees as of January 2008, representing 87% of its eligible 7000 employees.

eHEALTH REPORTS 18% GAINS IN INDIVIDUAL APPLICATIONS
eHealth Inc. (Mountain View, CA) reported an 18% increase in the number of individual and family health insurance applications submitted through the company’s web site in the second quarter of 2008. eHealth received 103,800 applications, compared to 88,300 a year earlier.

2011 MEDICARE ADVANTAGE RATES FROZEN
As expected (and as required by healthcare reform legislation), CMS announced that payment rates to Medicare Advantage plans would be unchanged in 2011.

MA JUDGE DENIES PLANS’ RATE REQUEST
A state court judge in Massachusetts denied a request by six health plans, which would have allowed them to raise premiums for small group and individual members at double-digit levels effective April 1.

KANG ON PAYMENT REFORM, PREVENTION
Jeffrey Kang, M.D., chief medical officer of Cigna, said in an interview with MHMN that to survive reform, health plans must focus on two areas: 1. Wellness and care coordination; 2. Payment reform. Kang said the reform legislation is “completely silent” on shifting provider payment from fee-for-service to fee-for-results.