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Canadian Employer Medical Costs to Spike 7.5 Percent in 2023: Aon

TORONTO, Jan. 11, 2023 /PRNewswire/ -- The costs of employer medical benefits across Canada are forecasted to rise 7.5 percent in 2023, according to the 2023 Global Medical Trend Rates Report released by Aon plc  (NYSE: AON), a leading global professional services firm. The report--based on insights from more than 113 Aon offices that broker, administer or advise on employer-sponsored medical plans around the world--provides insights on how medical rates will change based on interactions with clients and the insurance partners represented in their medical plan portfolio.

As employer-sponsored medical plans become an ever-increasing part of an organization's employee compensation, pressure is growing to accurately forecast and manage future costs. The overall market medical trend rate is an important component of overall spend, and employers need to understand the factors driving costs to better navigate volatility and make more-informed decisions.

"We published the 2023 Global Medical Trend Rates Report amid economically volatile conditions, the likes of which haven't been seen in decades. Record inflation has garnered all the headlines – and is a big part of the story – but it's important to highlight not only the top line number, but the regional differences, the conditions driving the trend rate and the ways in which companies are mitigating the increases," said Carl Redondo, global benefits leader at Aon. "Although there is still a fair amount of uncertainty on how long global inflationary pressures will persist, it is clear from the locations surveyed that the expectation around employer-sponsored medical plans is that the medical trend rates will see a sharp rise in 2023 – and employers need to consider several factors as they maintain the resilience of their workforce."

The top medical conditions driving medical plan costs in Canada are:


Autoimmune disease






Mental health



Lung disorder/respiratory





"Over the last 2 years, the COVID-19 pandemic has impacted health care costs across Canada, with claims slowly returning to pre-pandemic levels during 2022," said Joey Raheb, senior vice president and Canadian national leader for growth and client engagement for Health Solutions at Aon. "The effects of long COVID-19 and other COVID-19 related illnesses and comorbidities (i.e., mental health) continue to evolve, while the Canadian market remains conservative in its reaction to pricing. Supply chain and rising inflation will also play a substantive role in 2023. "We expect a return to typical medical inflation driven by Canadian plan sponsors taking a more preventative and pragmatic approach to managing plan spend in 2023."

The global average Medical Trend Rate for 2023 is expected to be 9.2 percent, up from 7.4 percent in 2022 and the highest since 2015. The top medical conditions driving medical plan costs globally are:

  1. Cardiovascular
  2. Cancer/Tumor Growth
  3. High Blood Pressure/Hypertension

Explore findings in Aon's 2023 Global Medical Trend Rates Report here.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

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