Healthcare Costs Continuing to Surge
WTW’s 2026 Global Medical Trends Report indicates that healthcare increases remain “significantly higher” than the 7.6% seen in 2024. Further, healthcare cost increases are projected to rise 9.6% in the U.S. in 2026, only a little less than the 9.7% experienced this year.
Globally, the average cost of health benefits is predicted to rise 10.3%, up from 10% in 2025 and 9.5% in 2024.
Employers add that they believe elevated costs will continue for more than three years, driven by medical costs, regional pressure on pharmacy and outpatient services, and global structural factors. About three-quarters said new medical technologies as the top reason for medical inflation, followed by the decline of public health systems (52%) and advancements in pharmaceuticals (49%).
Cancer tops the list of cost drivers globally.
#healthcare #costs
https://www.healthcaredive.com/news/us-healthcare-cost-increases-expected-to-fall-in-2026/805340
KFF Finds Medicaid Costs Will Rise
A healthcare policy group KFF report finds that, despite Medicaid enrollment expected to be flat, Medicaid officials anticipate medical costs to rise in 2026. Enrollment in Medicaid decreased by 7.6% in 2025 due to the continuing effects of redeterminations and states say enrollment will be flat in 2026. However, officials expect spending to increase by 8.6% in 2025 and by 7.9% in 2026.
States say provider rates, higher enrollee health needs, and rising costs for long-term care, pharmacy benefits and behavioral health services, will be the key drivers.
About two-thirds of states face at least a 50-50 chance of a budget shortfall.
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#medicaid #costs
States Cracking Down On MA Plans On Commissions
State insurance regulators are pressuring Medicare Advantage (MA) insurers to reverse decisions related to the withholding of commissions to brokers and agents. Health plans have stopped or reduced commissions to deter enrollments in their plans due to financial woes. They have also pulled out of a number of electronic enrollment processes and portals.
Insurance commissioners in Delaware, Idaho, Montana, Oklahoma, New Hampshire, and North Dakota have warned insurers they must stop employing marketing tactics designed to limit enrollment and curtail commissions.
#medicareadvantage #marketing
Healthcare Orgs Urge Extension Of Subsidies
With the government shutdown over, prominent provider and health plan organizations are urging lawmakers to act quickly to extend the enhanced Exchange premium subsidies.
#exchanges #healthcare #coverage
— Marc S. Ryan
