Despite the Biden-Harris administration’s claims that it has helped fix the problem, medical benefit costs are expected to outpace salary increases, a study by advisory firm Mercer found.
Employer-provided health insurance costs rose expected to be 7% in 2024 rise By 2025, 5.8%, or more than half of the 1,800 employers surveyed, will tell Mercer plans to reduce the cost of insurance plans in the new year by increasing employee co-pays. Health care cost growth is expected to outpace salary growth due to performance-based raises and total salary budget predicted Next year, they will only rise by 3.3% and 3.6%, respectively. (Related: Exclusive: ‘Failure on every count’: Millions lose insurance plans due to Obamacare, premiums soar)
According to Mercer, prescription drug spending is the fastest growing part of the surge in health benefits, rising 7.2% in 2024 and expected to rise by 7.2% in 2025 due to new and expensive gene and cell therapies. It is expected to continue to increase. Rising health care costs are primarily due to the widening gap between the supply of health care workers and the demand for health care services as older adults make up an increasingly large proportion of the U.S. population.
health insurance is killing us
Benefits consultant says health insurance costs are expected to rise rapidly again in 2025
The average deductible for a single coverage increased faster than workers’ wages
Hospital’s new contract will come with significant price increases to offset employee raises
～WSJ pic.twitter.com/V6wt7y8ajn— Lawyer Four Laws (@lawyer4laws) October 9, 2024
The Biden-Harris administration has vowed to address rising health care costs., swear In March, it announced that expanding the Affordable Care Act tax credit would reduce insurance premiums for millions of Americans by an average of $800 a year. The White House also capped prescription drug costs for Medicare beneficiaries at $2,000 per year starting in 2025. Experts told the Daily Caller News Foundation that Medicare premiums would have skyrocketed had the government not provided billions of dollars in subsidies to insurance companies. A ploy to buy votes.
“$2,000 cap [on Medicare out-of-pocket prescription drug costs] “Like other Inflation Control Act (IRA) provisions, the cost of Part D was scheduled to triple,” Michael Cannon, director of health policy research at the Cato Institute, previously told DCNF. “If millions of seniors saw their insurance premiums triple, they would go to the polls and vote out the people in charge…The White House is cutting costs and lowering premiums. Instead, they shift that cost onto taxpayers rather than subscribers.”
If the increase in medical benefit costs matches Mercer’s forecast of 5.8%, it would be the third consecutive year of increases of more than 5%, after nearly a decade of average increases of just 3%, the company said. reported.
The White House did not respond to requests for comment.
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