Open enrollment for health care plans has begun, and individuals can expect to face significant increases in costs. According to Beth Umland, director of Employer Research for Health and Benefits at Mercer, the total cost of health benefits is projected to rise by 6.5% next year, the highest increase in 15 years. This means that employees can expect to see higher paycheck deductions as employers shift more health care costs to their staff. The same health care services and goods that were purchased last year will now cost more.
A survey by the non-partisan health policy research group KFF found that the use of weight loss drugs, such as GLP-1s, is driving up costs for some larger firms. Many employers reported that their spending was higher than expected, with GLP-1s making up a significant portion of their prescription drug spending. This increase in costs will likely be passed on to consumers.
Marketplace customers who purchase health insurance through the Affordable Care Act (ACA) may also see significant premium increases if the enhanced tax credits expire. For example, Michelle Mazur, a small business owner, is facing a potential premium increase of over 200%, from $650 to $1,900-$2,000 per month for the same plan. This would force her to make tough choices, such as re-entering the workforce or having her husband come out of retirement.
To navigate these increased costs, consumers are advised to carefully review their options during open enrollment. Umland suggests that people should spend more time selecting a health plan than they would picking out a television. By carefully considering all available options, individuals can make informed decisions about their health care coverage and potentially mitigate the impact of rising costs. It is essential for consumers to be proactive and take the time to understand their health care options to avoid sticker shock and make the best choices for their needs and budget.