Health Insurance Inflation Set to Rise in 2022, Keeping Overall Inflation Higher

Health insurance prices tricky to quantify as benefits vary
BLS measures health insurance inflation indirectly via insurer profits
Profits fell in 2021 as consumers used more services post-COVID
But 2022 profits stronger, so health insurance inflation to rise
Could keep overall inflation higher, affecting Fed policy decisions
Health insurance swung core CPI about 0.3 percentage points yearly

cnbc.com

Relevant topic timeline:

9/17/2023

Flawed Measurement of Medical Costs in CPI Adds Uncertainty to Fed's Inflation Fight

The U.S. inflation rate has been helped by falling medical costs, but this trend is about to reverse, which could complicate the Federal Reserve's efforts to lower inflation back to pre-pandemic levels. The complex way the government measures the rise of medical costs and the fluctuations caused by the pandemic have contributed to the instability in health-care costs. The upcoming rise in health insurance costs is expected to have an impact on inflation, particularly the core rate that excludes food and energy costs. Economists are divided on the extent of this impact and whether it will hinder the Fed's fight against inflation.

9/20/2023

Employers Brace for Largest Healthcare Cost Surge in 10 Years, Driven by Inflation and New Treatments

U.S. employers are preparing for a significant increase in health insurance costs next year, with healthcare consultants forecasting a jump of 5.4% to 8.5% due to various factors, including medical inflation and the demand for expensive weight-loss drugs and gene therapies, though many employers are planning to spare their staff from shouldering the full burden of these rising costs.

9/29/2023

Minnesota Announces Modest Health Insurance Premium Increases for 2023

Premiums on health insurance policies sold to individuals in Minnesota are set to increase by an average of 1.9% to 5.5% next year, pointing to a general rise in healthcare costs, but still lower than previous market jumps.

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Posted 9/17/2023, 12:30:01 PM