Employers to see medical costs grow 6.5% in 2020, report finds

Medical costs for employers are set increase 6.5 percent in 2020, according to global professional services company Aon.

Aon conducted its 2020 Global Medical Trend Rates Report by surveying 105 Aon offices that broker, administer or advise on employee healthcare benefits. The trends Aon reported did not include ways employers can counter medical cost increases, such as cost-containment plan amendments and payer negotiations. 

In its survey, Aon found medical cost growth will remain relatively stable next year, thanks to moderate price and minimal utilization increases.

"Prices continue to drive trend while utilization of services remains relatively flat or decreasing," according to Aon. "Furthermore, we expect the negative utilization trends to drift higher in the next few years, but should remain low."

Aon also noted the volatility of pharmacy trends: "[W]e see gross trends remaining elevated (driven mainly by specialty drugs) while net trends remain lower as a result of aggressive negotiations and management of pharmacy costs through formulary design and utilization monitoring."

To read the full report, click here.

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