Health insurance costs for companies are climbing at the steepest rate in years, and it has executives looking for ways to remain competitive with job seekers while also managing the added expense, The Wall Street Journal reports.
Health-insurance costs are among the highest expenses for many U.S. companies, and are projected to rise around 6.5% for 2024, according to consulting firm Mercer.
The surge, which The Wall Street Journal reported on last month, may add significantly to costs for employer plans that Mercer said already average more than $14,000 a year per employee. Many companies are expected to take on most of the increases, benefits consultants said.
Finance chiefs are looking at ways to get a handle on the price hikes in the years ahead, including by potentially sharing costs with employees or adding cushions around health care budgets, while aiming to keep and attract employees in a competitive labor market.
Sunit Patel, chief actuary for U.S. health at Mercer, says some companies―even larger ones―are adding margin to budgets for health care costs or are considering buying coverage for costs over a certain threshold, called stop-loss insurance.
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