Medical costs vs health insurance costs. Two different things. Legacy health plans believe they are one of the same. But they’re not. Want proof? A 900 life case has not had a rate increase in 15 years while improving benefits at the same time. Want more proof?
Employers expect a 7% hike in health care costs in 2024
One notable change from last year is increased utilization because of delayed preventive or elective care during the pandemic, which declined from 12% to 4%.
By Alan Goforth
Employers expect another significant hike in health care costs as they look ahead to next year.
“Employers are anticipating another 7% increase in health care costs for 2024,” said Julie Stich, vice president of content for the International Foundation of Employee Benefit Plans. “Plan sponsors have indicated that chronic health conditions have a considerable effect on their medical expenses. That ties to the data that disease management and wellness programs rank high in cost-management strategies.”