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The rising costs of health care for employers will exceed inflation by 2020



12 September 2019 11:30

Photo : Freepik

The rising costs of medical care provided by the canadian employers will exceed inflation by 2020. It will be 6 %, or 1.9 % more than the normal inflation, says Aon in its Report, 2020 global trends in terms of costs medical. This growth, however, is stable compared to that of 2019, which is also 6 %.

“We expect that the trend rate medical for 2020 is similar to that of last year “, explains Greg Durant, chief actuary, canadian, solutions for health at Aon.

The costs of the drugs in question

According to Aon, this increase is the result of ” a combination of costs higher resulting from the increase in drug spending in general.” The firm points out that these risk factors are “manageable” with the help of various initiatives that employers can adopt.

Mr. During sees with a good eye the national insurance drug that is currently being studied, but recalls that the federal election of 21 October could change that. “If the government remains in power, we could see some changes in this regard, which could have a positive impact on the trend rate of medical costs in 2021, as the cost of prescription drugs is the main factor in the cost of insurance plans in Canada “, he adds.

A greater increase on a global scale

The report from Aon shows that on a global scale, the increase in the costs of health insurance plans sponsored by employers is more important than in Canada. In fact, it will be 8% in 2020, compared to a growth of 7.8 % this year.

The increase is ” primarily attributable to the increased benefits and a slight increase in projected general inflation “, say the authors of the report.

It is in the Middle East and Africa where the growth is the largest this year, with 13.7 % in 2019 and to 12.2% in 2020.

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