What Employers Are Planning

Employers are expecting a 7.0% increase in health benefits costs in the year ahead (see Health Care Costs Pulse Survey: 2023 Cost Trends). That’s an unpleasant surprise after a couple years of pandemic-induced reductions in health care spending—and at a time of economic stress.

In a recent survey, employers—72% self-insured—were split on what was driving this 7% increase. Seventeen percent said that “catastrophic claims” costs were the primary driver of increasing costs. This could be due to the results of delayed prevention and screening during the pandemic, which has led to increases in . . .