October 18, 2022
  • For the first time in 40 years, overall inflation accelerated at a faster rate than health care costs, but experts warn it won’t last long. According to a Mercer survey, employers expect health benefits costs to increase 4.4 percent this year – half the rate of inflation – but predict that the cost of health care coverage next year will exceed the amount budgeted as providers and drug companies raise prices. A separate survey corroborated the finding, estimating that in the next one to two years health insurance costs will jump 7.4 percent. Both surveys indicate that employers will be cautious in charging employees more because they believe affordable health benefits are an important tool to recruit and keep workers in a tight labor market. (Article here)