Despite little growth in the cost of medical services over the past year, inflation has finally caught up with health care.
In September, costs for medical services rose 6.5% year-over-year, according to a Bureau of Labor Statistics report released Oct. 13.
Analysts like Fitch said rising costs will lead payers to raise insurance premiums across the board due to mounting cost pressures from providers, including labor disruptions.
Studies have already confirmed that employers are preparing for higher healthcare costs next year due to inflation. Aon analysts said Aug. 18 that U.S. employer health care costs are expected to rise an average of 6.5%, or $13,800 per employee, in 2023.
“The only 100% sure way to stay on budget as the medical industry (especially hospitals) demand more and more is to increase premiums, increase deductibles, increase copays and coinsurance “said James Gelfand, Chairman of the ERISA Industry Committee. The Washington Post October 14. “Employers hate to do this, but the medical-industrial complex demands an ever-increasing share of workers’ wages.”
According to Job.