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Expect Increased Health Care Costs in 2024

doctor holding rising costs sign

1.5 minute read

In the face of ongoing economic pressures, employees should see an increase in their healthcare costs in 2024. Aon, a global professional services firm, released a report indicating that healthcare expenses are projected to surge by 8.5% in the coming year, reaching a cost of over $15,000 per employee. This figure is almost double the cost seen in 2023. Consequently, a comprehensive study conducted by Aflac, a leading supplemental insurance company, has confirmed that employees can anticipate a rise in premiums, deductibles, and copays in the upcoming year.

Report Findings

Many employees may struggle with rising healthcare costs. According to the report:

  • 50% of employees could not pay more than $1,000 in out-of-pocket costs for an unexpected medical event
  • 27% employees couldn’t lose more than $500 to cover out-of-pocket costs
  • 30% of employees were forced to make a difficult health care decision in the past year. Often, they had to choose between affording a treatment or prescription or paying a bill.

Employee benefits education also needs to be improved. While 79% of employers think their employees understand health care costs, less than half of employees agreed.

 

Takeaway

Employers are focusing on offering robust benefits to their employees. But as employees face increased financial strain, employers may want to focus on communication and employee benefits education. Helping employees understand their benefits and how best to utilize and maximize them will help them stretch their benefit dollars. Employers can also start identifying tools and resources to offset higher premiums, deductibles, and copays. Download the bulletin for more details.

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Adam Kuck

Adam Kuck

Adam Kuck embodies our company culture and team values with his personable and organized demeanor. He excels in building relationships, fostering connections, and is known for his friendly and knowledgeable approach. As Vice President of Retirement Income, Adam oversees hiring, managing, and developing retirement income salespeople, account representatives, and the client relations team. He also develops and executes strategy and nurtures regional relationships. Adam is a licensed insurance representative specializing in Health Reimbursement Arrangements (HRAs), Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Special Pay Plans, and OPEB Trusts for schools, cities, and counties across the U.S. As a licensed insurance agent with a Series 6 and Series 63 licenses, Adam is well-equipped to provide top-notch service to our valued clients.