Get ready for one major — and delayed — impact of inflation next year
Higher costs in healthcare is one such aspect, analysts say. Healthcare providers, insurance companies and employers meet regularly to make decisions about copays, premiums and prices ahead of the following year’s open enrollment.
“If you signed up for a health-insurance plan during open enrollment last year, those rates were set before all the inflation data was available,” Aneesh Krishna, analyst and partner at global management consulting firm McKinsey & Co., told MarketWatch. “‘If you signed up for a health-insurance plan during open enrollment last year, those rates were set before all the inflation data was available.’”
Health-insurance costs also rose 28.2% in September compared with a year ago and increased 2.1% month-over-month, according to the CPI data. Yet the prices for various categories of medical care did not change much, as consumers pay only a fraction of the increased amount of those services through their copays.
“Early rate filings for 2023 Affordable Care Act marketplace insurance plans suggest that health insurers are seeking proposed median increases of 10%.” Still, the effect could be more subtle than straightforward price hikes, Krishna said, with increased costs meaning that employers may cut back on healthcare benefits. When employers’ healthcare plans cost 4% to 5% more this year than last, he said, “they start thinking about how can they cut down benefits.”
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