If you’ve noticed healthcare costs climbing or employee claims becoming more complex, you’re not imagining it—and you’re not alone. Across the country, employers, providers, and insurers are all facing a significant shift in how healthcare is being used and delivered.
Here’s a look at what’s happening behind the scenes and how it may impact your business.
Utilization Is Up—and Staying Up
The expectation after COVID was that healthcare utilization would bounce back, then return to normal levels. That hasn’t happened. Instead, we’re seeing persistent, elevated usage of the healthcare system—and this affects every part of the insurance equation.
Key Drivers Behind Rising Costs
1. Postponed Care = More Serious Conditions
During the pandemic, many people delayed routine screenings and treatments. Now, those delays are catching up—particularly in the form of more advanced-stage cancer diagnoses and more complex care needs.
2. Advanced Medications with High Price Tags
The pharmaceutical space is delivering amazing breakthroughs. But the cost of these newer treatments—especially in oncology—is significantly higher than traditional medications.
3. Hospital Admissions Are More Expensive
Data shows that the average cost of a hospital admission is up more than 10%. That’s not just inflation—it’s because the conditions being treated require more intensive care.
4. Rural Health System Strain
As many as 900 rural hospitals in the U.S. are at risk of closing due to financial pressures. When care moves from those facilities into larger systems, the cost of delivering that care increases.
5. Insurers Are Revising Their Outlooks
Several major insurers—including Oscar Health, Elevance, and Centene—have recently cut their financial forecasts due to rising medical costs, especially in ACA marketplace plans. Even UnitedHealthcare’s stock has taken a hit in response to ongoing uncertainty.
What This Means for Employers
The bottom line: It’s not just your plan or your carrier—these are systemic changes affecting everyone. Employers may continue to see higher premiums, more complex claims, and greater scrutiny around plan design for the next 6–18 months.
How We’re Supporting Clients Through It
At Eriksen Insurance Services, we’re tracking these changes daily. We believe in proactive communication and strategy, so you’re never caught off guard by market shifts. Whether it’s helping you manage renewals, navigate claim trends, or communicate clearly with your employees—we’re here to help.
Let’s Talk Strategy
If you’d like to better understand how these industry trends might affect your specific plan—or want to explore options for controlling costs—we’re happy to walk through it with you.
📞 Call us at 847-426-2788
🌐 Or visit www.erikseninsurance.com
Eriksen Insurance Services is an independent brokerage serving small to mid-sized businesses across Illinois and beyond. Our job is to make insurance simple, smart, and strategic for you.