Prepare for Rising Health Insurance Premiums: What Employees and Employers Need to Know

WICHITA, Kan. – Many employers and employees are bracing for a significant rise in healthcare costs. Some plans might see increases close to 10%, a jump not seen in years.

Taylor Langlois, Co-Owner of Trinity Assurance Group, notes, “It’s been a while since we’ve seen increases like that.” In fact, the Kansas State Employees Health Plan reported a 7.5% hike in July alone.

Several factors are driving these increases. “Most of it has to do with how much people are using their plans,” Langlois explains. More members are accessing benefits, and out-of-pocket costs are rising. Additionally, the surge in demand for medications like Ozempic and Mounjaro, which are popular for managing diabetes and weight loss, is impacting costs. “A lot of this can be tied to the push for coverage of GLP-1 medications,” Langlois adds, highlighting inflation as another contributing factor.

If these changes worry you, there are steps you can take to prepare. Dr. Larry Straub, an Economics Professor at Newman University, suggests considering health savings accounts (HSAs). “These are great tax tools,” he says. “You save money before taxes, invest it, and it stays with you even if you switch jobs.”

It’s also wise to explore higher deductible plans. These often come with lower monthly premiums, making them a cost-effective option. “The higher the deductible, the lower the premiums generally are,” notes Straub.

Proactive health management can also help mitigate costs. Regular check-ups and preventive care can reduce the need for emergency visits, ultimately saving you money.

The landscape of health costs is shifting, making it essential to stay informed and adaptable. Keeping an eye on health trends and understanding your options can empower you to make the best financial decisions for your healthcare needs.

For more detailed information on managing healthcare costs, Yale’s recent report on the impact of medication price hikes can be found here.

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