U.S. employers can expect to see health care costs rise by 8.5 percent in 2012, a larger average increase than what was experienced in 2011, according to a report Wednesday from consulting firm PricewaterhouseCoopers.
Changes in health benefit plan designs, however, including increased cost-sharing with employees, could keep employers’ costs increases to an average of 7 percent next year, the PwC report said.
PwC said the next year’s predicted cost increase is based on the expectation by health plans and employers that lower than expected utilization rates from the prior few years is rebounding in 2011 and will continue to grow in 2012 as a result of “the release of pent-up demand during the recession.”
The slow economic recovery, unemployment and reduction in disposable income caused people to seek fewer healthcare services, which led to lower-than-expected growth in employers’ medical cost trends in 2010 and 2011, the report said.Â
