The costs of employer-sponsored medical benefits in Canada are expected to rise 7.5 per cent in 2023, according to a new report by Aon.
The report analyzed responses from more than 100 Aon offices that broker, administer or advise on employer-sponsored medical plans across the world. Consistent with last year, it found the medical conditions responsible for rising plan costs were cardiovascular disease, cancer/tumour growth and high blood pressure/hypertension.
The report also projected increased benefits costs in Europe (9.1 per cent, up from 5.6 per cent), the Middle East and Africa (14.5 per cent, up from 11 per cent), Asia Pacific (9.2 per cent, up from 8.2 per cent) and Latin America and the Caribbean (11.6 per cent, up from 10.6 per cent).
North America (6.6 per cent) was the only region where the cost trend is unchanged from last year, due to the delayed impacts of inflation on U.S. medical trends. However, the report noted North American trend rates will likely continue to experience upward pressure over the next couple of years, further accelerating the cost and affordability challenges already present in the region.