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Aon predicts increase in employer healthcare costs to double next year

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“Even though inflation is subsiding, health care trend is growing as medical providers push insurers for larger cost increases to cover the higher costs of wages and supplies that they endured during the last couple years but were unable to pass on to payers.”

The “proliferation” of newly indicated weight loss drugs, new technologies, severity of catastrophic claims and increasing share of specialty drugs, also affect the increase, said Ashford.

There has also been an increase in high-cost claimants, said Dam.

“This growth is caused by several factors, including new high-cost injectable drugs, increasing cancer rates and longer hospital stays resulting from multiple conditions, complications and complex procedures. On the other hand, reinsurance premiums are climbing, making it harder for employers to hedge the elevated claim risk.”

Health insurers previously reported a weighted average prescription drug trend of 9.3%, according to Buck’s survey of close to 100 insurers and/or administrators in December 2022.

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