2023 Trends in Employer Sponsored Health Insurance
Regardless of how you look at it, employer-sponsored health insurance remains one of the most important types of coverage available to those in the United States. However, it's also no secret that premiums are higher than ever. According to one recent study, the average annual premium for single coverage is $7,911. Family coverage sees that number climb to $22,463.Additionally, the UBA Employee Benefits Benchmarking trends report finds that average total annual cost per employee across various medical plan types is $12,024 and this reflects both the employer and employee contributions.
This is why it's so important to pay attention to the top trends in employer sponsored health insurance in a given year. It helps make sure that your employees are always getting the coverage they need while saving your business money at the same time.
What is Employee Sponsored Health Insurance?
An employer sponsored health insurance plan is exactly what it sounds like - one that is selected and purchased by an employer and offered to eligible members of the workforce and their family members.
In addition to covering some portion of the premiums with the workers, the employer is the one who typically selects the plan itself. They will do so based on their ability to find a plan that meets the needs of their workers as a collective. Any premium contributions made by the employer are not subject to taxes, which is crucial because from the point of view of those workers, it can help lower their taxable income at the end of the year.
Recent Health Care Trends
There are two main trends in employer sponsored health insurance that help not only contextualize where the topic currently stands, but also give insight into where it might be headed over the next few years.
Shifting Workforce Expectations
These days, top tier talent looks to more than just a base salary when deciding where to work. Especially given everything going on in the world right now, people want a job that they believe in. One that gives their lives purpose and meaning. One that closely aligns with their values in a multitude of ways.
What this means is that if you think you can just "buy" the best people in your field by way of big salaries, the odds are that you'll be mistaken. Employees are increasingly looking to benefits packages and to health insurance in particular when not only making a decision about where to work, but also whether to look for a new job if they quickly become dissatisfied with the one they already have.
Because of that, employers need to see their benefits programs for what they are: an opportunity for real action that creates a meaningful, lasting impact on company culture. With the right approach it can also be one that cements a legitimate competitive advantage for themselves at the same time.
Mental Health Support
Another key thing to understand is that employees are increasingly prioritizing their own well-being, particularly when it comes to mental health. An employer who shows that they are just as concerned about this as their employees are finds themselves in a position to both attract and retain top talent in the field.
In addition to offering insurance with mental health coverage, employers should be prepared to build as much flexibility into the workplace as possible. Allowing employees to work via a hybrid virtual model can benefit both the business and its workers alike.
In large numbers, modern workers are expecting more out of their employers to that end - which is why mental and behavioral health support will only continue to grow in popularity over the course of the next decade.
The Impact of Medical Care and Health Insurance Rises
Another thing to keep in mind has to do with the impact of medical care in general as health insurance costs continue to rise. It has been estimated that in the coming year, businesses in the United States can expect to see a median health care cost increase of 7% - 8.5% for 2024, in some areas and industries the cost increase will be more.
There are a variety of factors that are contributing to these increases including high-cost claims and even higher utilization rates. As more people participate in employer sponsored health insurance and get coverage, the overall costs naturally rise as a result.
Likewise, the increasing cost of even common prescription drugs is also causing stress for both employees and employers alike.
Choose AEIS to Help with Your Employee Benefits
At AEIS, our team of passionate, experienced advisors is prepared to significantly improve your approach to employee benefits. We treat each client as the unique entity that they are - there is no "one size fits all" approach to what we do.
This means that not only do we make sure that your employees are fully covered and aware of all the benefits you offer, but we can also help put together customized group benefits offerings that align with your long-term goals as a business and are up to date on the most recent employer sponsored health insurance trends. This can help you attract higher quality employees than ever, cementing a true competitive advantage for yourself in the marketplace. We also have the technology needed to streamline your costs and improve what you're offering for years to come as well. It's a personalized level of care and attention-to-detail that you won't be able to find anywhere else.
If you'd like to find out about even more 2023 trends in employer sponsored health insurance, or if you'd like to speak to a team of
California benefits advisors about your own needs in a bit more detail, please feel free to
contact AEIS today.
