Amina Niasse
September 12, 2024
NEW YORK, Sept 12 (Reuters) – U.S. employers expect health insurance costs to rise an average 5.8% in 2025, largely due to increased cost of medical services as well as higher use, according to a survey released by consulting firm Mercer on Thursday.
The year 2025 is projected to be the third consecutive year in which healthcare costs for employers rise by more than 5%. Costs increased an average 3% during the decade prior, the report said.
In part, the higher cost of each medical service is driven by a continued shortage of healthcare workers, linked to providers raising prices, Mercer said. Spending on behavioral health and popular but pricey GLP-1 weight loss drugs are also contributors.
The share of total health plan costs paid by employees, an average of 21%, is expected to remain about the same in 2025, said Beth Umland, director of employer research for health and benefits at Mercer.
