Managing At 8.5%

The bad news for employers, federal and state payers, and health plans is that the medical cost trend for the year ahead is at 8.5% for the second year in a row. The new analysis, Medical Cost Trend: Behind The Numbers, identified three key drivers—pharmaceuticals, hospital costs, and behavioral health spending.

The pharmacy cost trend is;actually;2.5 points higher than the medical trend, with a $50 billion increase in pharmacy spending in 2024 (up from;a;$20 billion;increase;in 2023). The analysis attributes this;increase to expanding use . . .