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US Health Insurers Poised to Accelerate Premium Hikes for 2023

Oct. 5, 2022, 4:47 PM

Health insurance companies are set to raise prices next year faster than medical costs are increasing, according to some Wall Street analysts, adding pressure on US employers already facing severe inflation.

Benefits brokers expect rate increases of 6% to 12%, according to a survey conducted by BofA Global Research. Increases for employers will be higher than usual as inflation and labor expenses get priced into insurance premiums, analysts wrote.

While unexpected jumps in medical costs can hurt managed-care companies, they can benefit when they’re able to price for rising expenses, BofA’s Kevin Fischbeck and Michael Cherny wrote. The survey suggested ...