INDIANAPOLIS (AP) — The cost of health insurance could grow at a slower pace next year, and that may squeeze profit margins for smaller insurers that focus on commercial coverage, according to a Wedbush analyst.

Analyst Sarah James said in a Monday morning research note that surveys of employers and insurers point toward slower price increases compared to 2011, when some elements of the health care overhaul, which aims to eventually provide coverage for millions of uninsured people, caused a one-time bump in rates.

James also noted that health care use has grown at a slower pace this year, and that will affect pricing negotiations for next year's commercial business, which includes individual health insurance and employer-sponsored group coverage. The analyst estimates that the cost of insurance will rise in the 7-percent range next year, compared to increases of about 8 percent this year.