Getzen Model of Long-Run Medical Cost Trends: Update for 2025 - 2035+

September 2024

Author

Thomas Getzen, PhD

Description

The Getzen Model is a long-term medical cost trend projection model based on 30+ years of observation. Some key observations from this year’s projection include the following:

  • Long-run medical cost increases are estimated at 5.0% per year eventually declining to match the rate of increases in per capita incomes.
  • The component assumptions of long-run medical cost increases are unchanged from last year.
  • The Society of Actuaries Research Institute’s Getzen Model Project Oversight Group (POG) expects that there will be greater budgetary resistance and more regulation in the future which will limit the share of total incomes/GDP devoted to medical care.

Materials

Getzen Model of Long-Run Medical Cost Trends: Update for 2025 - 2035+

Getzen Model 2025

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Previous Models

Getzen Model Update for 2024-2034+

Getzen Model Update for 2023-2033+

Getzen Model Update for 2022-2030+

Getzen Model Update for 2021-2030+

Getzen Model Update for 2020-2029+

Getzen Model Update for 2019-2028+