NEW YORK – According to a recent report released by PricewaterhouseCoopers’ Health Research Institute, medical cost trends in the private sector will drop from 9.9 percent in 2008 to 9.6 percent in 2009.

Historically, when medical cost trends flatten out, a spike usually follows – which could occur in 2010, said Bruce Henderson, director of Health Industries Advisory, Healthcare Payers for PricewaterhouseCoopers.

While many external drivers impact medical cost trends, health plans and employer groups are implementing or have implemented programs and IT to keep those trends down.

Henderson pointed out that lower-priced treatments have been one of the decelerators of healthcare cost increases.

“One of the key components in the recent deceleration is the drop in drug spending growth,” he said. “Nearly two thirds of all prescriptions are now generic, a trend that health plan design has influenced.”

Urbana, Ill.-based Health Alliance Medical Plans is seeing a 10 percent medical cost trend. CFO Gordon Salm said the health plan is making significant health IT investments. Health Alliance will complete its system conversion in 2009 and be able to automate administrative processes and provide information to its providers, employer groups and members, he said.