Health insurance at work: the cost of the policy in the US will increase dramatically in 2024
In the US, employers expect overall healthcare costs to increase in 2024. Find out more about how employers are trying to normalize the cost of insurance, the reasons for the increase, and what the health insurance policy for employees will include in 2024
Due to significant inflation in 2024, the cost of a health insurance policy for workers in the US will increase. According to forecasts, this price increase will be the highest in recent years. And while most of the costs are expected to be borne by employers, many employees may also feel the negative effects. About the reasons for the increase in the price of the health insurance policy and its main components further.
How much did a health insurance policy cost in 2023?
In 2023, the annual cost of a family health insurance policy in the US was $24,000, of which employees paid $6,575. The price of an annual policy for one person was $8,435, the worker's share was $1,400.
It is not yet known how much will have to be paid in 2024, but when the employer payment increased by 4.5% in 2023 compared to 2022, employee premiums were 1.7% higher on average.
In total, nearly 153 million Americans have job-based health insurance, making it the largest source of coverage.
Why will health care costs increase in 2024?
Inflation peaked in the US last year, but its impact on the health care sector is often delayed, as contracts between insurance companies and health care providers typically last several years. That is why, even though the rate of inflation is falling, prices in the health care sector are rising as health care providers push insurance companies to increase payments to cover the costs they have incurred in the past two years.
In addition, Americans once again turn to doctors more often, perform routine examinations, operations, etc. During the Covid-19 pandemic and quarantine, such actions were less popular.
There has also been a significant increase in the use of specialty drugs, especially diabetes drugs and weight loss drugs. At the same time, the average cost of these drugs has almost doubled since 2022.
How do employers try to normalize the cost of an insurance policy?
Employers take a variety of measures to try to control the cost of health insurance policies for their employees. Increasingly, instead of automatically renewing a contract with an existing insurer, companies are trying to find better deals and lower prices by comparing offers from different agents. In addition, companies review the components of the policy, analyzing the risks and reducing the amount of coverage.
What will an employee health insurance policy include in 2024?
Nearly a quarter of employers plan to narrow the list of risks their health insurance policies will cover within the next two years, and 13% of executives are considering policies that limit or eliminate out-of-network coverage for non-emergency care.
At the same time, every fifth company is considering the implementation of a special treatment program for certain conditions, for example, some orthopedic, cardiac or oncological diseases. Workers will be able to receive care from high-quality providers for little or no cost.
It is also planned that in 2024, mental health care will become a priority for most employers, as more and more managers are concerned about staff burnout. Nearly two-thirds of employers plan to work with their insurance agents to expand their coverage of mental health risks. In addition to treatment by psychiatrists and psychologists, companies offer employees visits to counselors and coaches. Employers hope that such support will help normalize the psychological state of the team and improve the work process.
Daria Rogova, Head of Insurance at Visit World
To move, travel or work safely in a new country, you will need travel insurance. You can apply for an extended policy on our website here.
Products from Visit World for a comfortable trip:
Checklist for obtaining a visa and necessary documents in the United States;
Legal advice on migration to the United States;
Travel insurance for foreigners in the United States;
Medical insurance around the world.
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