Forecast of commercial healthcare costs to come in 2025 (MedCity report), what has occurred in the past, and what is expected beyond 2025. Meanwhile Congress is twiddling their thumbs arguing amongst themselves over what is more important to their existence . . . constituents or big business. Interesting too, how the Sadlers are getting themselves off the hook for the Opioid epidemic. They didn’t know? New Survey, employers’ project trending healthcare costs reflect an expected annual percentage increase in patient treatment costs. Rising from 6% in 2022 to nearly 8% by 2025. This according to a new survey from the Business Group on Health. Ellen Kelsay, president and CEO of Business Group on Health “That is the highest projection we’ve seen by
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Forecast of commercial healthcare costs to come in 2025 (MedCity report), what has occurred in the past, and what is expected beyond 2025. Meanwhile Congress is twiddling their thumbs arguing amongst themselves over what is more important to their existence . . . constituents or big business. Interesting too, how the Sadlers are getting themselves off the hook for the Opioid epidemic. They didn’t know?
New Survey, employers’ project trending healthcare costs reflect an expected annual percentage increase in patient treatment costs. Rising from 6% in 2022 to nearly 8% by 2025. This according to a new survey from the Business Group on Health. Ellen Kelsay, president and CEO of Business Group on Health
“That is the highest projection we’ve seen by this survey in over 15 years quoted during a media briefing. And at that rate of increase, when compounded, healthcare costs in 2025 will be more than 50% of 2017 levels. What’s worse is this healthcare inflation is expected to persist.”
The Business Group on Health’s 2025 Employer Health Care Strategy Survey, published Tuesday, received responses from 125 large employers that cover more than 17.1 million lives. Additional findings include:
– Pharmacy costs are a major contributor to cost increases. In 2023, the median percentage of healthcare dollars spent on pharmacy was 27%, compared to 24% in 2022 and 21% in 2021. About 76% of respondents said they are “very concerned” with pharmacy costs. To address pharmacy costs, employers’ top strategies in 2024 include maximizing “manufacturer copay program benefits” and implementing “new programs/features offered by my incumbent PBM partner.” For 2026 and 2027, however, 40% are considering implementing a transparent PBM.
Some data . . .
– Glucagon-like peptide 1 or GLP-1 are also drivers of healthcare costs in 2024. Approximately 56% of respondents claim GLP-1s drive healthcare costs to a “great extent.” Seventy percent expressed concern about the appropriate use and long-term cost of GLP-1s p and other weight management medications. Employers are covering GLP-1s for diabetes and obesity.
– Claimed conditions driving healthcare costs in 2024? Eighty of employers listed cancer. Seventy percent listed musculoskeletal conditions and 40% listed cardiovascular conditions.
– Estimated cost of healthcare per employee in 2024 is $18,639> This is up $1,438 from 2023. Employers do not plan to put this cost increase on employees. Estimated out-of-pocket cost for employees in 2024 is $1,825, compared to $1,831 in 2023.
– Managing costs? Employers will reevaluate their vendor partnerships. Many plan to use the request for proposal (RFP) process to negotiate better pricing and terminate relationships with underperforming vendors. In 2025, a third of employers said they will assess or use the RFP process for their PBM.
“When assessing health plan and PBM partnerships, employers said claims/utilization data, data measurement and transparency are important.” Who would have thought? Maybe there is a concern about the piggy bank running out of tolerance and funding. More people deciding Medicare for all, etc.?
Typical rah, rah at the end of the article.
President and CEO Ellen Kelsay (Business Group on Health): “These findings really do reflect employer concerns about the quality of the information they are receiving from vendors and the importance of accurate data upon which to make decisions. Partners that ultimately are able to deliver high quality, transparent services and provide more robust reporting and credible measurement will stand more favorably as employers are conducting these evaluations.”
“Business Group on Health,” MedCity News