What’s Driving the Increases
Here’s what’s happening: new medical technologies are the biggest culprit. About 74% of insurers surveyed named tech advancements as the top driver of medical inflation. Think cutting-edge treatments, expensive diagnostic tools, and breakthrough pharmaceuticals. They’re amazing for patients but brutal for budgets.
The decline of public health systems came in second at 52%, followed by pharmaceutical advancements at 49%. “Despite variations in healthcare provision in different countries and regions around the world, rising medical costs are a consistent trend for all,” says Linda Pham, global health and risk leader at WTW.
And get this: over half of insurers — 55% — think these elevated costs will stick around for more than three years. This isn’t a temporary spike.
What It Means for You
So what does this mean if you get insurance through work? You’re probably looking at higher premiums, bigger deductibles, and maybe even reduced benefits next year. Some employers might shift more costs to employees. Others might scale back coverage.
Globally, the picture’s even worse. Latin America’s facing an 11.9% increase, while the Middle East and Africa are looking at 11.3%. North America’s sitting at 9.2%, and Europe’s at 8.2%.
Bottom Line
Look, healthcare costs aren’t coming down. If your employer offers open enrollment soon, review your options carefully. Consider high-deductible plans with HSA contributions if you’re healthy. Check if your company offers wellness programs that could reduce premiums.
For more information on healthcare costs and employee benefits, visit the U.S. Department of Labor at dol.gov or check your employer’s HR portal.
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