Health Insurance Costs Are Expected to Rise up to 35% Next Year

Health Insurance Costs Are Expected to Rise up to 35% Next Year According to a Majority of Benefits Leaders Finds New Lively Market Research Survey

Lively’s third annual Employee Benefits Pulse Check report finds that employee financial stress is on the rise and competitive benefits are a key part of how HR leaders plan to combat it.

Lively, Inc., a top-rated health and lifestyle benefits platform, known for launching the modern Health Savings Account (HSA), today announces the release of its 2024 Employee Benefits Pulse Check report. The report presents data and insights around employee benefits decision making gathered from an anonymous survey of 250 US-based HR and benefits decision makers, collected in collaboration with CITE research. Overall, the report found that as financial stress and prices increase, HR leaders rely on health and wellness benefits, and their providers, to help employees afford healthcare and lower stress.

“With benefits playing such a key role in employee recruitment and retention, benefits providers must ensure that they are supporting HR leaders by providing an easy-to-use platform, knowledgeable customer service, and benefits education”

“As the financial stress of everyday people is on the rise, health and lifestyle benefits play a key role in helping people access and afford the care and services they need,” said Alex Cyriac, co-founder and CEO of Lively.

• The report found that 80% of benefits leaders feel that offering competitive financial benefits is more important than a year ago.
• 64% of HR leaders expect health insurance costs to rise between 10 - 35% in the next year.
• 50% of benefits leaders say that health insurance is the most important benefit for employee recruitment and retention.
• 40% of benefits leaders say that employee financial stress is on the rise due to economic volatility and inflation.
• 47% of benefits leaders are seeing employees ask for increased base pay and bonuses.
• 78% of companies offer Health Savings Accounts to help keep healthcare costs affordable and provide a tangible financial benefit for their employees.
• 62% of HR leaders expect enrollment in High Deductible Health Plans to increase in the next year.

“With benefits playing such a key role in employee recruitment and retention, benefits providers must ensure that they are supporting HR leaders by providing an easy-to-use platform, knowledgeable customer service, and benefits education,” said Shobin Uralil, co-founder and COO of Lively.