The stable rate of increase in the U.S. medical trend will be due mainly to moderate price increases, coupled with flat or decreasing utilization rates. (Photo: Shutterstock)yer
The increased use of specialty drugs and other trends will cause U.S. employer's medical costs to rise faster than inflation next year – but the increase will be slower than what many employers elsewhere across the globe will face, according to Aon's 2020 Global Medical Trend Rates Report.
U.S. employer medical costs, or "medical trend," will rise 6.5 percent in 2020, the same increase as in 2019, though the rate will outpace inflation by 3.8 percent, Aon brokers predict. The stable rate of increase in the U.S. medical trend will be due mainly to moderate price increases, coupled with flat or decreasing utilization rates that will likely decline even further in the next few years, albeit slightly.
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
