Aon predicts large business healthcare costs to rise 5% in 2022


Costs for large US employers who pay for the medical care of their employees will rise an average of 5% to more than $ 13,000 per employee in 2022, insurance broker Aon predicts.

The increase would be slightly lower than what employers budgeted for this year compared to last year, according to the professional services firm. Budgeted healthcare costs for clients have increased to an average of $ 12,792 per employee in 2021, a 5.2% increase from 2020.

The company said the analysis uses its database which captures information for more than 700 U.S. employers representing 5.6 million employees. The data represents $ 74 billion in health spending in 2021.

The analysis notes that employer health plan costs and medical claims were waived for most employers in 2020 due to the COVID-19 pandemic, when much care was postponed or ignored during quarantines. Employers expected the medical claims experience to return to more typical growth levels in 2021 and 2022.

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“For next year, levels of medical use are expected to be higher than those seen since the start of the pandemic,” said Ed Cwikla, Aon’s chief global actuary for healthcare solutions. “Preventive and ambulatory care are the medical services that are expected to increase the most in 2022.”

Cwikla said the use of telehealth services is also expected to increase, continuing the trend seen during the pandemic.

Regarding plan costs 2021, employer costs were expected to increase by 6.2%, while employee bonuses from paychecks were to be a more modest increase of 1.2% from 2020 Plan costs represent the combined employer and employee premiums for medical expenses and prescription drugs, but exclude direct employee payments such as deductibles, co-payments and coinsurance.

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On average, employers subsidize about 81 percent of the cost of the plan, up from 80 percent in 2020. Employees paid for the rest, according to Aon’s analysis.

US medical plan costs increase from 2020 to 2021

Package cost * 2020 2021 Change
2020 to 2021
Employer cost $ 9,708 $ 10,310 + 6.2%
Employee paycheck bonuses $ 2,453 $ 2,482 + 1.2%
Total cost of the package $ 12,161 $ 12,792 + 5.2%

“In a tight labor market, employers are prepared to absorb most of the increases in health care costs,” Cwikla said. “Employers Budget More Due to the Uncertainty and Anticipation of Members Facing Health Conditions of Increased Severity Due to Unmanaged or Undiagnosed Chronic Illnesses, ‘Long-Haul’ COVID-19 Patients and those with increased mental health needs. ”

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Slight increase for employees in 2021

Employees in 2021 contribute approximately $ 4,505 for health care coverage this year, of which $ 2,482 is paid as premiums on paychecks and $ 2,023 is paid through plan features such as deductibles, co-payments and coinsurance.

Employee costs 2020 2021 Change
2020 to 2021
Employee bonuses on the paycheck $ 2,453 $ 2,482 + 1.2%
Employee personal expenses $ 2,013 $ 2,023 + 0.5%
Total employee costs $ 4,466 $ 4,505 + 0.9%

Source: Aon

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