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 Price waterhouse Coopers (PwC).

How Much Do Employers Predict HealthCare Costs Will Increase in 2024?

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 healthcare costs for 2024, more than $15,000 per employee, according to a recent studdy 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 clim 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.

Employer Takeaway

These reports highlight how employers will likely continue to struggle with rising health care costs for the foreseeable future. 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 ar meeting employees’ needs.