The Cost of Employee Health Insurance — Rising Significantly

Aon has issued a report on the average cost of employer-sponsored health care plans. The company expects coverage costs to rise 9% in 2025 to over $16,000 per employee. That’s significantly higher than the 6.4% seen from 2023 to 2024 when costs were $14,823 per employee.

Those estimates come from Aon’s Health Value Initiative data which logs information from 950 employers who employ 6.7 million people.

Aon’s North America chief actuary of health solutions, Debbie Ashford says two things are driving the increases. They are big jumps in the cost of medical claims and the cost of prescription drugs. In the prescription area, a big jump in the use of GLP-1 for diabetes and weight loss is the big contributor.

She also notes that better employment levels and accompanying wage increases are also leading the way.

Aon’s statistics looked at 2024 and found that employees will put about $4,858 toward their health care coverage and $2,867 will be paid from paychecks. Another $1,991 will come from deductibles, copays and coinsurance.

Source link: Insurance Business America — https://bit.ly/4dvGTrh