According to indicators, the United States has the most expensive medical care in the developed world, and is about to become even more expensive. Relative to the size of its economy, the U.S. spends more on health care than other high-income nations. Approximately 154 million people purchase health insurance through their employer, and many could see their payroll deductions increase next year. Some will also likely see their out-of-pocket costs increase as employers pass on the sudden increase in health care costs. U.S. employers will experience increased health care costs per employee. This increase has a direct impact on their workers, who could see their payroll deductions increase by 6% to 7%. This is because employers will pay significantly more—nearly 9% more per employee on average, for the same level of coverage—to provide health benefits to their workers. Even after cutting or modifying their health benefits, employers face their largest price increases in 15 years, according to a new survey of more than 1,700 organizations by Mercer, a benefits consulting firm, according to NPR. Fifty-nine percent of employers surveyed plan to implement “cost-cutting changes,” which will include higher deductibles and increased co-pays. As costs rise, companies are forced to look for ways to prevent these increases from eroding their profitability. “It’s almost a perfect storm hitting employers right now,” says Larry Levitt, executive vice president of health policy at KFF, a nonprofit health policy research organization. “The price of health care is rising faster than it’s been in a long time … and typically when an employer gets a big increase from an insurer, they try to pass some or all of that increase on to their workers.”

Inflation Side Effects

Consumers are still feeling the aftereffects of record-high inflation, complicated by potentially recurrent price increases.

Although overall inflation has eased, the U.S. economy continues to experience cost strains that are impacting employers' ability to invest in employee benefits.

Broken Health Care System

The U.S. health care system is showing signs of failing, with employers at the center of the price shock. The lack of a truly competitive market and the growing concentration of healthcare companies reinforce the difficulty in controlling costs, leaving workers in a precarious situation regarding their health coverage options.

What trends are anticipated in the cost of healthcare?

Future trends anticipate that the cost of healthcare will continue to increase significantly in 2025, with global projections of increases around 10.4%, maintaining the trend of double-digit growth in several recent years.

This increase is mainly due to factors such as advances in medical technologies, pharmaceutical products, saturated public healthcare systems, and a growing demand for services, especially mental health services.

These increases in costs affect workers and companies in several ways. For workers, this means potentially higher insurance and healthcare costs, as well as impacts on their well-being and productivity due to issues like musculoskeletal disorders and mental health.

For businesses, labor costs tied to health benefits are rising, which can translate into higher operating expenses and pressure to adjust health plans or compensation strategies.

There's also a push toward modalities like telemedicine that seek to improve access and efficiency, but don't completely stem rising costs. These trends are forcing businesses and governments to seek strategies to sustainably manage these rising costs in the near future.