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Group medical costs expected to jump 8 percent in 2025

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At Schauer Group, we want to ensure our clients understand the factors influencing group benefits pricing, and we are committed to helping your organization explore all options to reduce the impact of expected pricing increases. Please reach out to us if you have questions or would like to discuss these issues.

An 8 percent increase in group medical costs is expected in 2025 – marking the highest increase for commercial health care spending in 13 years, according to a PwC Health Research Institute report.

The report’s data is based on interviews with actuaries across U.S. health plans that, combined, represent more than 100 million employer-sponsored members. The medical cost estimate looks at the costs of treating patients year over year, assuming their benefits don’t change.

The key drivers of the increase?

  • Prescription drugs – both the introduction of new, expensive drugs that address chronic conditions and increased usage of these prescriptions
  • Inflation, especially the rising costs of hospital services, which are attributed to shortages in the workforce and increased expenses for labor and supplies
  • Greater use of behavioral health benefits and higher mental health claims costs since the pandemic

 
While the employee benefits team at Schauer Group can’t control group health care pricing, our goal is to help you design a program that both meets the needs of your team and keeps long-term cost control in mind. If you’d like to discuss further, please reach out to your Schauer Group employee benefits representative.

To learn more about projected group benefits trends, read the full report from the PwC Health Research Institute.


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This article is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. All rights reserved.
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Alison Matas
Director, Communications
Phone: 234.666.2113
alison.smith@schauergroup.com

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