Payers are going to raise premiums across the board because of growing cost pressures on providers such as inflation and workforce disruptions, according to a new brief from Fitch Ratings.
In the Oct. 7 brief provided to Becker's, Fitch analysts found that rising claims costs from providers will lead to higher premiums in 2023 — likely boosting payer revenues and total earnings.
Despite this, the credit rating firm warned of the impact of the Medicaid redetermination process looming next year and the potential for commercial enrollment decreases during a recession — thereby possibly limiting inflation gains.
Studies have already confirmed employers are preparing for higher healthcare expenditures next year because of inflation. Financial services firm Aon found U.S. employers' healthcare costs are expected to rise by an average of 6.5 percent, or $13,800 per employee, in 2023.