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Dive Brief:
- American employers pay. 6.5% more In 2023, the average employee health care coverage compared to this year, Aon report on Thursday.
- Employer spending growth of 3.7% between 2021 and 2022, the highest recent rate of growth, is still below the 9.1% consumer price index, which reflects inflation.
- Inflation affects health care costs later than other goods and services due to multiyear contracts between providers and insurers, but the effects were more widespread during the year, the report said.
Dive Insight:
While most industries can pass on higher prices for materials and other resources to consumers when inflation occurs, health care providers are locked into years-long contracts with insurers.
It’s unclear how long it will take for inflation to be fully reflected in health care costs, although it probably will. Take a few years Until Most insurance contracts have been renegotiated, according to the Kaiser Family Foundation and Peterson report.
“Unlike in previous decades, we are estimating that the health care budget for US employers will be three times lower than the Consumer Price Index this calendar year,” said Debbie Ashford, president of North American health solutions at Aon, in a release.
But still, some inflation will be felt next year as employers see larger increases in health plan costs than in previous years. The report is based on Aon data from 700 US employers.
In the first year of the outbreak, medical claims were muted when patients skipped or delayed treatment due to stay-at-home orders and refusal to visit medical facilities. Claims have gradually returned to normal levels for employers, the report said.
The report does not detail expected employee health care plan costs in 2023.
But this year Employees contribute an average of $4,412 for coverage, with $2,520 paid from their paychecks in premiums, and the remaining $1,892 in deductibles, co-payments and co-pays, Aon said.
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