News Headlines Article

Rising prices drive estimated 6% medical cost inflation in 2020
Modern Healthcare

Medical costs are projected to rise 6% in 2020 as prices continue to swell and utilization stagnates, according to a new report.

Despite employers’ efforts to stem unnecessary care through high-deductible health plans, medical cost growth still outpaces general inflation, PricewaterhouseCoopers Health Research Institute’s analysis of employer-sponsored healthcare spending found. The 2020 projection aligns with the average medical cost inflation over the past five years and is down from double-digit spikes in the 2000s. That estimate lowers to a 5% net growth rate after figuring in health plan changes such as increased employee cost-sharing and network and benefit changes, HRI notes.

Commands