Significant Increase in Health Care Costs in 2024 Confirmed
Reports Show Employers Expect a Significant Increase in Health Care Costs in 2024
U.S. employers expect a significant increase in health care costs for 2024, according to reports from the International Foundation of Employee Benefits Plans (IFEBP), Aon, Mercer, Willis Towers Watson (WTW) and PricewaterhouseCoopers (PwC).
Employers estimate a median 7% increase in health care costs for 2024, according to a recent survey of employers by the IFEBP. This is the second consecutive year employers have projected a 7% increase in health care costs.
Employers expect an 8.5% in health care costs for 2024, more than $15,000 per employee, according to a recent study by global professional services firm Aon. This is nearly double the 4.5% increase in health care budgets that employers experienced from 2022 to 2023.
Employers anticipate health care costs to climb 6.6% in 2024 without factoring in plan design changes, according to preliminary survey results from benefits consulting firm Mercer.
Employers anticipate health care costs to climb 6.5% in 2024, according to survey results from benefits consulting firm WTW.
Employers estimated a 7% increase in health plans’ health care costs in 2024, According to research from PwC. This estimate is higher than projections from 2022 and 2023.
While the best strategies for addressing increasing health care costs may vary for each organization, employers should review their benefits offerings to determine the most effective cost-saving strategies and whether they are meeting employees’ needs.
Contact us for more employee benefits resources.