On this Labor Day, how is health care evolving for workers and businesses? First, health care spending is increasing, with costs rising faster than inflation. Fox Business reports on a new study from Aon that says:
…employer health care spending is projected to rise 9% in 2025 to more than $16,000 per employee, notably higher than the 6.5% increase companies saw in their health care budgets between 2023 and 2024.
One way to save money is for employers to contract directly with health care providers. BenefitsPro Reports that:
…around 75% of employers have already considered or used direct hiring, and another 41% said they are likely to do so by 2025.
The cost of health care varies between individual and family coverage. KFF reports:
The average annual premium for employer-sponsored health insurance in 2023 is $8,435 for individual coverage and $23,968 for family coverage.
For both individual and family plans, employees make significant contributions to health insurance.
On average, covered workers contribute 17% of the premium for single coverage and 29% of the premium for family coverage, similar to the percentages contributed in 2022. Covered workers at small businesses contribute, on average, a higher percentage of the premium for family coverage than those at large businesses (38% vs. 25%). As a result, the average contribution amount of covered workers at small businesses ($8,334) is considerably higher than the average contribution amount of covered workers at large businesses ($5,889).
For more on the quality and cost of healthcare for workers, stay tuned to this year’s Healthcare Economist blog.
