Employer-provided medical benefit costs in Canada are forecasted to rise 7.0 percent in 2022, outpacing general inflation by 5.0 percent, according to the 2022 Global Medical Trend Rates Report released today by Aon plc (NYSE: AON), a leading global professional services firm.
The increase for Canadian employer-sponsored medical plan costs expected next year is due to a combination of higher costs for prescription drugs (including biologic immunomodulators), dental care and paramedical expenses.
“We continue to see a moderate decline in the expected health and dental claims activity in 2021 as a result of COVID-19, said Joey Raheb, Senior Vice President and National Leader Growth & Client Engagement, Health Solutions, Aon. With the assumption that no major subsequent lockdowns will occur, comfort level of members in seeing practitioners returns to normal and medical/dental office safety guidelines becoming more efficient, we expect utilization to return to pre-pandemic levels by the end of 2021 or beginning of 2022. Therefore, we anticipate for 2022 a Medical Trend rate at a 7% level, like the anticipated trend reported in the prior year.”