Solve problems with Microsoft SharePoint Foundation. According to new data from consulting firms Mercer and Willis Towers Watson (abbreviated WTW), the costs of employer-sponsored health plans in 2024 are expected to increase by more than 6%. Although inflation peaked last year, the impact is often delayed in the health sector because contracts between insurers and health care providers are often fixed for several years. Similarly, in the preliminary results of a survey shared with Money, WTW found that health insurance costs are expected to increase by 6 to 6.4%.
Nearly 153 million Americans have employment-based health insurance, the largest source of coverage by far, according to KFF. Improving mental health care benefits is also a top priority for many employers, said Jim Winkler, chief strategy officer for the Business Group on Health, which represents large multi-state companies. Companies plan to take on most of the increase, but many workers could also be affected by rising premiums and out-of-pocket care expenses, according to benefits consultants. The cost of health insurance in the United States is on track to reach its highest increase in more than a decade, with a 6.5% increase in the costs of employer coverage in 2024. That's why the Desoto, Texas company is considering joining an organization of professional employers to manage all of its benefits, including health, vision, dental, life insurance and disability coverage. As the Wall Street Journal first reported, that would represent the biggest price increase for employers' health plans in about a decade.
The Mercer survey, released on Thursday, revealed that health plan costs could increase by 6.6% next year, assuming that employers do not make changes to their current plans to reduce costs. To review its employee health insurance program for 2024, said Melissa Wayne, chief financial officer. More and more companies are looking for offers for their health insurance programs from several insurers, instead of automatically renewing their contract with the current insurer, to try to find better deals and lower prices. Employers are taking several steps to try to control costs, said Courtney Stubblefield, managing director of health and benefits at WTW, formerly Willis Towers Watson, which projects that employers' costs will increase by 6.4% in 2024, compared to 6% this year.
The cost of employment-based health care coverage by 2024 is expected to rise at its fastest rate in years, as inflation permeates insurance policies. Other factors, such as the sector, region and type of health plan, can also influence the amount you will ultimately have to pay once the price increase expected for next year occurs.
