Employer health care costs expected to jump 9% in US next year

foxbusiness.com:

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Inflation might be easing in some segments of the economy, but health care costs are set to soar next year.

A new study conducted by professional services firm Aon found employer health care expenditures are projected to surge 9% in 2025 to more than $16,000 per employee, markedly higher than the 6.5% increase businesses saw in their health care budgets from 2023 to 2024.

A new study says employer health care costs are expected to increase by 9% in 2025. (iStock / iStock)

«This year's forecast comes after a couple years of slow growth in employer-sponsored health care spending during the pandemic,» Debbie Ashford, the North America chief actuary for Health Solutions at Aon, told FOX Business. 

«While the rest of the economy experienced high inflation over the last few years – which is now coming down – the impact on the health care sector was delayed due to the multi-year nature of medical provider contracts with insurers and payers,» she explained. «As those contracts get renegotiated, providers will aim to earn more for the services they provide in order to pay higher labor and medical supply costs.»

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The analysis said the driving forces behind the expected cost increase include the fact that medical claims continue to climb at elevated levels along with increased expenditures on specialty prescription drugs – particularly GLP-1 drugs like Ozempic and Wegovy, used to treat obesity and diabetes.

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Ashford said