Managed Care: Employer-Based Health Insurance Premiums Surge by 7% in 2024
Managed Care Premiums Increase Significantly
According to the KFF's Employer Health Benefits Survey, managed care premiums for employer-sponsored health insurance have climbed by 7% in 2024, mirroring last year's increase. Premiums for single coverage elevated by 6% this year, indicating substantial growth in the healthcare sector's cost structure.
Wage Growth vs. Premium Hike
Wages grew by 4.5% while inflation reached 3.2%, making the health premium hike considerably higher than these metrics suggest. Over the past five years, premiums have inflated by 24%, closely aligned with inflation and wage growth rates.
Employee Share and Plan Deductibles
The average employee share hit $1,368 for single coverage and $6,296 for family coverage. Surprisingly, this represents lower contributions than in 2023. Despite modest growth in premiums, healthcare utilization remains a concern with 32% of covered workers facing a general annual deductible of $2,000 or more.
Coverage Implications for Healthcare Executives
Healthcare executives within health systems are challenged to balance costs against insurance provisions like GLP-1 agonists, with only 18% of large employers covering these medications. Moreover, abortion coverage remains another contentious issue, with significant uncertainty among firms regarding coverage.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.