Medical Costs Projected to surge, Threatening Financial Strain by 2026
San Juan, Puerto Rico – Puerto Ricans face a looming economic challenge as medical costs are projected to significantly increase by 2026, according to a new study by global professional services firm aon. The anticipated rise threatens to place significant financial strain on individuals and employers alike, prompting calls for preventative healthcare measures.
The Aon study, analyzing over 100 countries and states were the company brokers, administers, or advises on employer-sponsored health plans, forecasts a concerning trend. while globally the average medical trend rate saw a slight decrease from 10% to 9.8% – marking a return to single-digit growth for the first time as 2023 - North America and Asia are experiencing continued price increases. This global shift is attributed to decreasing medical inflation and cost control efforts, but doesn’t negate the upward pressure in key regions like Puerto Rico.
Sylvia Ruiz, director of Customer Service in Health Solutions for Puerto Rico at Aon, emphasized the importance of preventative care as a key strategy to mitigate the impact of rising costs. “Prevention is the key,” Ruiz stated. “Wellness initiatives, how we take care of ourselves, how we do our preventatives to detect conditions that you may have before they are already in a chronic or much more advanced stage” will be crucial.
The report highlights that increased utilization of services, the adoption of new medical technologies, growing demand for private healthcare, and macroeconomic factors – including economic and geopolitical uncertainty - are driving the upward trend in rates. Ruiz warned that without a focus on prevention and proactive strategies, the population may struggle to afford anticipated medical expenses.
Aon’s analysis indicates the slight global decline is due to a decrease in global medical inflation and efforts to control costs. However, the report notes that in Europe, stabilization is occurring while North America and Asia continue to see prices climb. The study underscores the complex interplay of factors influencing healthcare costs worldwide.
