Employer health benefits costs will increase 7.5% in 2023 due to aging workforce, inflation; what can employers do? — survey report
Summary
Cardio and hypertension health issues on the rise As was the case last year, cardiovascular illness, cancer/tumor growth, and high blood pressure/hypertension were identified as the major disorders responsible for growing plan costs. Another report by WTW[2], found that employer-sponsored health benefits costs are expected to rise by 10 percent on average globally in 2023, amid soaring inflation and increasing health-care services utilization. One major factor contributing to the rising costs of employer-sponsored medical benefits in Canada is the increasing prevalence of chronic conditions such as cardiovascular disease, cancer, and high blood pressure. According to the WTW survey, overuse of care due to medical professionals recommending too many services or overprescribing is the leading driver of rising costs, with 74% of insurers citing it as a reason. However, by focusing on government policies and regulations, private sector solutions, and employee engagement, it’s possible to work towards addressing these rising costs and ensuring that all Canadians have access to quality healthcare.