Employer Health Costs Rise by 7% in 2024 According to American Journal of Managed Care
Understanding the Rise in Employer Health Costs
According to the American Journal of Managed Care, the cost of family health insurance premiums for employer-sponsored plans rose by 7% in 2024, matching last year's increase. The average premium for family coverage now stands at $25,572, with workers contributing an average of $6,296 annually.
Trend Analysis Over Five Years
- Total premiums have increased by 24% over the past five years.
- Deductibles for single coverage have risen by 8% since 2019, averaging $1,787.
Employer Strategies to Mitigate Costs
The survey covering more than 2,100 employers reveals that large firms have initiated programs to support lower-wage workers. Notably, nearly a third aim to cushion these employees from rising premiums.
Fertility Benefits and Mental Health Services
- About 27% of companies provide coverage for in-vitro fertilization and 26% for artificial insemination.
- Challenges in accessing mental health resources are evident, with about 25% of employers reporting narrow networks.
The Controversy Surrounding GLP-1 Drug Coverage
While interest in GLP-1 drugs like Wegovy surges, only 18% of large employers offer coverage for weight loss, affecting nearly 50 million adults who meet clinical criteria.
Changes in Abortion Coverage Policies
- Post-Dobbs vs Jackson ruling, 8% of firms do not cover legally provided abortions.
- Variation in coverage highlights ongoing challenges in reproductive health access.
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.