Costs for the most popular health care plans in the United States are expected to increase by double-digit rates for the rest of 2007 and continuing into 2008, reports Buck Consultants.

Analyzing responses from 79 health insurers, HMOs and third-party administrators, the HR and benefits consulting firm found that costs for four of the more popular health care options are set to increase by more than 10%, including PPO plans (10.75%), HMO plans (11.14%), point-of-service plans (10.54%) and consumer-driven plans with high deductibles (10.36%).

In addition, respondents indicated prescription drug costs are projected to rise by 11.68% for the coming year, up from the 11.33% reported in Buck's previous survey. Dental costs are also expected to rise with dental PPOs climbing 5.71% and dental HMOs jumping 4.88%.

Health insurers did report lower trends for plans that supplement Medicare -- 7.32% for plans with drug coverage and 6.82% for plans without. This reflects the impact of federal controls on Medicare fees and the lower increases expected in Medicare deductibles and copays, Buck reports.

"Insurers are concerned about the cost shifting to private employers that may result due to health care reform at the state level," says Harvey Sobel, a Buck principal and consulting actuary. "Complying with federal and state mental health parity laws is also expected to raise costs."

Health insurers use trend factors to calculate premium rates, and large employers use them to budget their future health care costs. Respondents to the survey cover approximately 91 million lives.