Expect Increased Health Care Costs in 2024

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.