4 Key Trends Driving Employer Health Care Costs in 2024
Amid ongoing inflation pressures, employees and employers alike can expect their health care costs to increase in 2024. Global professional services firm Aon reported that health care costs for employers will grow by 8.5% in 2024 (to more than $15,000 per employee), nearly double 2023’s figure. Here are four key trends driving employer health care costs in 2024:
- Mental health challenges—Employees’ mental health concerns and needs rose during the COVID-19 pandemic and continue to linger in its aftermath.
- Pharmacy costs—High-cost prescription drugs and an increase in the median percentage of health care dollars spent on pharmacies are increasing costs for employers and employees.
- Cancer treatment—Cancer drives health care costs for many employers. Delayed preventive screenings during the pandemic could result in more late-stage cancers among workers in 2024.
- Health care delivery—Certain health care innovations, such as on-site or near-site clinics and virtual care that became popular during the pandemic, are expected to remain critical for employees as they prioritize primary or preventive health care.
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Article Published By: Zywave, Inc.
