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US Employer Health Costs Projected to Rise 6.5% in 2020

The Fiscal Times Staff

The cost of employer-sponsored health benefits will rise 6.5% in the U.S. in 2020, or about 3.8 percentage points higher than the overall inflation rate, according to a report by consulting firm Aon. “Prices continue to drive trend while utilization of services remains relatively flat or decreasing,” the report said.

But the cost increases in the U.S. are projected to be 1.5 percentage points lower than the global average of 8%, up from 7.8% in 2019. “Employers, insurance carriers and the medical industry have done a commendable job of moderating cost increases in recent years, considering the headwinds of an aging population, high drug prices and rising chronic conditions,” said Will Sneden, U.S. Health Solutions practice leader for Aon.

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