The Dangerous Economist: Health Insurance Costs for Businesses to Rise by Most in 15 Years

Insurers say that the rising premiums are driven by growing healthcare costs

Any time the cost of producing a good or service rises the price consumers pay will rise.

Excerpts from the article:

"Costs for employer coverage are expected to surge about 9.5% in 2026, according to an estimate from Aon, while an employer survey by WTW suggested 9.2%."
"the recent average of roughly $25,500 for a family plan."
"Insurers say rising premiums for health coverage are driven by the growing cost of healthcare. The causes include higher prices for hospital care, expanding use of services—due in part to higher prevalence of conditions such as cancer in the working-age population—and pricey drugs, including the popular weight-loss and diabetes treatments known as GLP-1s.
Employers are moving to blunt the spike, and tactics such as changing plan designs are likely to shave a percentage point or two from the average increase, the benefits firms said. Some are pushing more costs to employees through larger payroll deductions for premiums or higher out-of-pocket charges such as deductibles."
"60% [of larger employers] were planning to look at replacing their health insurer or pharmacy-benefit manager in the next few years. It also found that nearly a third of employers surveyed are giving priority to new plan designs that could include changes such as limits on access to certain doctors or hospitals."
"Rising employer healthcare costs are driven in part by the continuing impact of inflation, which has been playing out in higher prices negotiated by hospital systems. New, higher-cost drug therapies, including the GLP-1s, are also raising spending, insurers and benefits consultants say."
"Americans are using more healthcare services, partly due to rising care for serious health issues such as cancer, cardiovascular conditions such as atrial fibrillation, and musculo-skeletal problems that can lead to lower-back and joint procedures"
"Diseases that we usually thought of as for elderly, we’re seeing more and more in a younger, working-age population"

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