Health Benefits In 2024: Higher Premiums Persist, Employer Strategies For GLP-1 Coverage And Family-Building Benefits

Area of Science:

• Health Economics
• Healthcare Policy
• Employee Benefits

Background:

• Employer-sponsored health insurance is a primary source of coverage for many workers.
• Rising healthcare costs and benefit utilization present ongoing challenges for employers and employees.

Purpose of the Study:

• To analyze current trends in employer-sponsored health coverage costs, deductibles, and benefit offerings.
• To examine the impact of inflation and wage growth on health insurance premiums.

Main Methods:

• Analysis of national survey data on employer-sponsored health plans.
• Calculation of average premiums, deductibles, and worker contributions.
• Examination of trends over the past five and ten years.

Main Results:

• The average annual premium for employer-sponsored family health coverage reached $25,572 in 2024, a 7% increase from 2023.
• Family premiums have risen 24% over five years, mirroring inflation and wage growth.
• Average single-coverage deductibles increased 47% over the past decade.
• In 2024, 18% of large firms offered GLP-1 antagonists for weight loss, with 28% of very large firms providing this benefit.

Conclusions:

• Health insurance costs continue to escalate, placing a significant financial burden on both employers and employees.
• Deductibles have substantially increased, potentially impacting access to care.
• Emerging treatments like GLP-1 antagonists are beginning to be covered by some large employers, indicating a shift in benefit strategies.