American Journal of Managed Care: Health Insurance Premiums Rise 7% for Employers in 2024

Growing Health Costs for Employers

According to the American Journal of Managed Care, employer health costs continue to rise, with family health insurance premiums up by 7% in 2024, mirroring last year's increase. This surge brings the average premium for family coverage to $25,572, with employees contributing an average of $6,296 per year.

Long-Term Trends in Premiums

Over the past five years, total premiums for family coverage have risen by 24%—nearly aligning with inflation and wage growth. Despite this, employees' contributions have remained relatively stable, while the average deductible for single coverage has increased by 8% since 2019, now sitting at $1,787.

Impact on Workforce

Large employers are recognizing the financial strain on lower-wage workers; around one-third have introduced programs to alleviate rising costs. Drew Altman, President and CEO of KFF, notes that “employers are shelling out the equivalent of buying an economy car for every worker every year.”

Shifts in Health Coverage Trends

The report also sheds light on fertility benefits and mental health services availability among large firms. While 27% of employers offer in-vitro fertilization coverage, mental health services often face restrictions, with 48% expanding resources amidst rising demand.

Limited Access to Weight Loss Drugs

Interest in GLP-1 drugs like Wegovy has surged, yet only 18% of large employers cover these for weight loss. Restrictive conditions make access even more challenging for those qualifying for treatment.

Abortion Coverage Variances

The aftermath of the 2022 Dobbs vs Jackson ruling has caused discrepancies in abortion service coverage. Reports indicate that while some firms provide comprehensive coverage, a significant portion restrict access.