Projected 8.5 Percent Increase in Employer Healthcare Costs in 2012

NCHC Writers
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News Type: 

News Article

May 25, 2011

Issue Areas: 

Cost, Economic Impacts, Trends

 Employers can expect to see an 8.5 percent increase in healthcare costs in 2012, a slight increase from the 8 percent increase expected this year, according to a new “Behind the Numbers” report from PricewaterhouseCoopers’ Health Research Institute covered by Healthcare Payer News.

PwC identified three drivers it believes will have a major impact on the cost of medical services:

·      Consolidation among hospitals and physicians.

·      Increased cost shifting from Medicare and Medicaid.

·      Post recession stress builds up on workers.

PwC also identified three factors it expects will keep costs in check for 2012:

·      Increased cost sharing.

·      Blockbuster brand-name drugs go off patent.

·      Tiering on out-of-network providers. 

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