Employer health costs projected to rise 9.5 percent

Aon projects that U.S. employer health costs will rise by roughly 9.5% next year, assuming the current status quo, in its new risk analysis released this week. The broker, described as the second largest global insurance firm, expects that trajectory to translate into an added average cost of about $19,000 per employee. Aon said the forecast represents a fourth consecutive year of near-double digit increases. It cited rising medical utilization, higher prevalence of chronic disease, and growth in drug spending as key drivers. The firm also expects health plan cost increases across all industries, with the biggest spikes in finance and insurance, technology and communication, and the public sector.