09/12/2023

Healthcare Benefits Costs Set to Rise 5.4 Percent in 2024

Inflation, rising labor costs blamed for the spike

Employers' health benefits costs are set to rise 5.4 percent next year, but this spike isn't as high as may have been feared given inflationary pressures in the broader economy, according to a new analysis from Mercer.

Over the past decade, the firm's annual survey of employer-sponsored health plans projected cost increases of between 3 percent and 4 percent, according to the analysis. But high inflation as well as labor pressures across the healthcare industry have driven up costs, which in turn increases benefit expenses.

Beth Umland, director of research for health and benefits at Mercer, told Fierce Healthcare that given the complex economic environment, "a sharper spike" in costs was possible. But that didn't pan out, at least for 2024.

Please select this link to read the complete article from Fierce Healthcare.