Courtesy Walrath Recruiting Inc.
by Renee Walrath
Open enrollment is around the corner and employers are scrambling to accommodate the rising cost of health insurance.
The annual premium for individual coverage has risen more than $225 per year on average, and family coverage has risen more than $700 per year on average from 2010 to 2022. Statistically speaking, prices for healthcare grow much faster than inflation and that combined with increasing employee demands has companies, both small and large, forced to make difficult decisions.
The specific reason for increasing healthcare costs can be attributed to a variety of factors including the following:
• Continuing research and new, innovative technology leading to more expensive procedures and products.
• Labor shortages, physician consolidation, and contract renewals are amplifying the already aggravated industry.
• Chronic healthcare conditions, catastrophic health claims and rising prescription drug prices add to the sizeable hike for 2024.
This is the second year in a row that employers have projected a 7 percent-plus hike and confronting affordability and disrupting costs are among the top obstacles for employers in 2024.
Organizations must reshape their strategies and business models to allay the drastically different costs. Nearly two-thirds of large employers (500-plus employees) are planning to make enhancements to their health offerings in 2024 to support employee needs.
