Employee Benefits Market Check Survey: 2024 Health Care Renewal Perspective

As we approach the year’s midpoint, employers are increasingly focusing on their upcoming 2024 health care renewals. Numerous factors contribute to the renewal rates and overall costs of health care plans, and this year, employers may experience higher premiums than in the recent past due to ongoing COVID-19-related impacts and general inflation, among other factors. Employers may also consider changing their health care carrier or administrator, weighing the potential cost savings against the impact it might have on their employees.

We conducted a poll during a webcast on May 18 to gain insight into employers’ perspectives. The results are in the charts below.

Which area(s) are you concerned will negatively impact your health care renewal for 2024?

Results based on 128 employer respondents (allowed to select multiple answers)

At this point, do you plan to change your health insurance carrier or administrator for 2024?

Results based on 131 employer respondents

Key Findings
Despite significant concerns over rising provider costs and inflation, it is evident that most employers have little to no interest in changing their health care carrier or administrator, with almost 70% indicating their intention is to remain unchanged. This sentiment holds true across industries.

While employers may have limited control over many negative impacts on their health care renewals, we strongly recommend fostering a culture of well-being within the workforce and encouraging employees to actively participate in cost-saving measures, such as routine preventive care and using generic drugs when possible. Additionally, close collaboration with employee benefits advisers is crucial. Regular plan audits, analyzing claims data, and similar practices can offer valuable insights into cost drivers. This enables employers to identify areas for improvement, negotiate with vendors, and make informed decisions to optimize their health care expenditures.

Should you have any questions regarding any of this information or want to discuss your well-being strategy, please contact your local Assurex Global adviser.