WICHITA, Kan. (KWCH) – Employers and employees alike are preparing for what some are calling the highest increase in healthcare benefit costs in years, with some plans seeing rises of nearly 10 percent.
“It’s been a while since we’ve seen increases like that,” said Taylor Langlois, Co-Owner of Trinity Assurance Group, noting that people are already experiencing rising healthcare benefit costs.
For instance, the Kansas State Employees Health Plan experienced a 7.5 percent increase in July.
Langlois identifies several factors contributing to the increases, which range from six to nine percent in some cases.
“Most of it has to do with utilization of the plans,” he explained. “A lot of utilization has increased for employees just using the membership, using the benefits, cost-share increasing.”
Langlois also attributes the expected spike to the demand for medications like Ozempic and Mounjaro, which are being used to combat diabetes and obesity and have gained popularity for weight loss.
“I would also say a lot of it has to do with GLP-1 medications and this huge push to try to get that type of coverage added to the insurance. I think the third thing I would have to hand it to inflation.”
If these increases have you concerned, there are ways to prepare.
Dr. Larry Straub, an Economics Professor at Newman University, advises the use of health savings accounts.
“Those are really great tax tools that are out there,” he said. “They allow you to save money before taxes, you can invest it, you can take it with you when you leave an employer.”
It’s also important to keep your options open.
“You might consider working with higher deductible plans, which can dramatically reduce your insurance costs,” said Straub. “Generally, the higher the deductible, the lower the monthly premiums.”
Straub said staying proactive about your health to avoid emergency visits is also important.
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