From PwC’s “Behind the numbers 2025”:
“PwC is projecting an 8% year-on-year medical cost trend in 2025 for the Group market and 7.5% for the Individual market, driven by inflationary pressure, prescription drug spending and behavioral health utilization.”
The report observes that commercial health care spending growth will likely rise to its highest level in 13 years. Additionally, PwC adjusted its 2023 and 2024 trends higher – respectively, from 6.0% to 8.0% and from 7.0% to 7.5% – to account for “higher-than-expected utilization of GLP-1 drugs for both diabetes and weight management as well as high acuity inpatient and outpatient utilization” (see chart below).
In the 2024 MedBen Client Report, we note that MedBen clients experienced a 5-year (2019-23) medical cost trend of 3.9%, compared to 6% national trend – a stat based on last year’s PwC cost estimates. But with the revised 2023 number, the 5-year national medical cost trend is actually closer to 6.4%.
As the chart above demonstrates, MedBen client costs have consistently remained below national trend, and we expect the “trend gap” will continue to grow in the coming years. We do this by helping you take advantage of saving opportunities when they arise… be it a new reimbursement strategy, assistance to counter high-cost specialty drugs, a focused wellness program – or a combination of solutions.
This year’s Client Report shows you proven solutions to reduce your health care spend so it remains below national trend – and we highlight innovations to lower your costs further still. If you haven’t read it, we encourage you to do so and call your Account Management team if you have any questions.