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Health care costs are expected to increase 8% next year, driven by catastrophic claims, specialty drugs and medical provider costs. This estimate from the International Foundation of Employee Benefit Plans is slightly higher than projected cost increases of 7% in 2022 and 2023.

Utilization of medical services due to chronic health conditions was cited less among employers as a reason for increasing costs, the report found. Of those who indicated specialty prescription drugs are driving prices upward, most specifically pointed to glucagon-like-peptide-1 drugs (75%), while 19% said cell and gene therapy are driving up costs.

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