Cost of employer-sponsored plans set to rise faster than inflation

The average cost increases for employer-sponsored health plans around the world will significantly outpace inflation, according to a new report from Aon Hewitt. While the global average projected inflation rate is 3.6 percent, the average cost of an employer-sponsored plan will rise by 9.1 percent, the report says, though projected trends will vary significantly among different parts of the world. For example, North America and Europe are expected to see cost increases of just below 6 percent, while Latin America and the Middle East are set to see average medical trend rates in the double digits.

"We expect medical costs to continue to escalate around the world due to global population aging, overall declining health, poor lifestyle habits particularly in emerging countries, continued cost shifting from social programs and an increase in utilization of employer-sponsored health plans," Wil Gaitan, senior vice president and global consulting actuary at Aon Hewitt, said in an announcement. Report