Although inflation is easing in many areas, health care premiums remain a significant strain on budgets for both employers and consumers.
The Wall Street Journal cited an annual survey by healthcare nonprofit KFF, which found the cost of employer health insurance rose 7% for a second straight year, adding more than $3,000 to the average family premium, which reached roughly $25,500 this year.
Businesses are trying to absorb these higher premiums, spending about $1,880 more this year, which brought their average cost for family premiums to $19,276. However, businesses may not be able to sustain this trend, according to Shawn Gremminger, CEO of the National Alliance of Healthcare Purchaser Coalitions. Workers are ultimately impacted through smaller raises or job cuts as employers look for ways to offset rising insurance costs.
Don’t expect these higher costs to change anytime soon, as prices for health services are typically locked in under multiyear contracts and are projected to rise again rapidly in 2025.
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