Employer Healthcare Costs to Increase 8.5% in 2024

 


A recent study conducted by a leading professional services firm revealed that the anticipated expenses borne by U.S. employers for their workforce’s healthcare will see a notable uptick of 8.5%, surpassing $15,000 per employee. This surge, assuming companies do not introduce augmented employee contribution methods or alternate cost-reducing strategies, stands almost twice as high as the 4.5% escalation observed from 2022 to 2023. Throughout 2023, the mean allocated budget for healthcare plans was approximately $13,906 per employee, based on the same study.

The report underscores that subsequent to the pandemic, medical claims are reverting to the customary growth rates, placing employers at the forefront of forthcoming inflationary cost demands. The inflation surge experienced at a macroeconomic level during the past couple of years did not translate into a substantial rise in employer-sponsored healthcare expenditures. This was attributed to the prolonged nature of typical medical provider agreements, as highlighted by a statement from healthcare chief of professional services. Despite the abating inflation, healthcare expenses are still on the rise due to medical providers pressing for elevated cost increments to cover escalated wage and supply expenses they endured but couldn’t transfer to payers.

Various other factors are also contributing to the escalating healthcare cost trends, including the proliferation of newly introduced weight loss medications, emergent technologies, the severity of high-cost claims, and an increased proportion of specialty drugs. Employee contributions via payroll deductions were projected to observe a more restrained 1.7% growth from 2022 from an analysis. Generally, employers underwrite roughly 81% of a health plan’s cost, while the remaining portion is covered by employees.


https://www.allzonems.com/employer-healthcare-costs-to-increase-in-2024/


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