31% There are a variety of reasons for the rising costs, all of which are coming together in a perfect storm of in昀氀ation, deferred care, supply- chain constraints, retention challenges, and high drug costs. Considering that many have multi-year contracts with health care providers, businesses have not yet felt the full e昀昀ects. The challenge employers face in understanding and 15% estimating the cost of their employee bene昀椀ts 14% programs continues to prove di昀케cult. 8% 7% 5% 5% 5% 5% 3% 1% Hospital care Prescription drugs Clinical services Home Other personal Net cost of Nursing care facilities health care health care health insurance Investment Government Physician services Government public administration health activities Typically, medical in昀氀ation outpaces in昀氀ation in the rest of the economy. But in 2022, medical prices are growing at a similar rate as in past years, while prices in some other parts of the economy are growing much more rapidly than in the past. –Peterson-KFF, Health Systems Tracker5 2023 Benefits Trends: The evolving workplace 59