2025 Rael & Letson Trend Survey

There isn’t a single source of information that can accurately predict the near-term medical and prescription drug trend rates. However, plan professionals and Trustees need a starting place for use in budgeting and planning.

Each year, Rael & Letson surveys selected health insurers that operate in the California, US Pacific Northwest, US Southwest, and Hawaii markets (our clients’ primary geographic footprint) to gather expected trend rates for medical and drug costs.

Results across the various regions showed the following expected cost increases from calendar year 2025 to 2026:

• Average HMO medical trend increases range from 7.89% to 10.24%
• Average PPO medical trend increases range from 9.41 to 10.85%
• Average drug trend increases range from 11.03% to 13.37%

See the full survey results at 2025 Rael & Letson Trend Survey Overview.pdf.

The 2026 Rael & Letson Trend Survey results will be published in the Fall with market expectations for cost increases from calendar year 2026 to 2027.