Health plan cost projection calculator: what will your premium be in a few years?
Enter your current yearly premium and two yearly trend rates to see the cost each year and the gap that builds up between them. Built for finance and HR teams that budget for benefits beyond the next renewal.
Project your premium at two trend rates.
Enter your own trend assumptions. The result updates as you type.
The total yearly cost of the plan.
What you expect if nothing changes.
What you expect with active cost management.
Your projection
An illustration, not a forecast. Trend depends on your claims, plan design and market, and the two rates here are your own assumptions.
Why project more than one year?
A renewal tells you the next 12 months. It does not tell you what the plan will cost in three years if rate increases keep coming. Compounding does the damage. A plan with a 9 percent yearly trend costs about 30 percent more after three years. At 6 percent it costs about 19 percent more. The gap between the two is the budget the employer can protect by acting early.
What drives trend?
Medical and drug prices, how often and how heavily employees use care, the plan design and the group’s own claims all move it. Some of those are outside the employer’s control. Others, such as plan design, network choices, funding model and contribution strategy, are not.
Common questions
What trend rate should I use?
Start with your last two or three renewals. For the managed path, use a lower figure you believe a change in plan design or funding could hold. Test several.
Does this include enrollment changes?
No. It projects a fixed premium base. If headcount or enrollment will change, multiply the starting premium to match.
Is the projection a promise?
No. It shows what two assumptions imply. It is a conversation tool for budgeting and for deciding what to change.
What can bring trend down?
Plan design, funding model, network and pharmacy choices, contribution strategy and wellness or care management programs all play a role. Our cost strategy page lays out how we approach it.
Talk to us about managing cost
Book a 30-minute call and we will review your trend, your renewal history and the levers that fit your group. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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