February 15, 2024
Health care costs for 2024 continue to be a concern for employers, as forecasts are generally worsening over the past 6 months. Driven by higher than expected medical and pharmacy costs, employers are taking a wide array of actions to mitigate increases.
2024 Trend Projections (After Plan Design Changes)
Sources: 2024 Large Employer Health Care Strategy Survey and Updated Health Care Trend Projections Survey.
The increases in health care trend were about 1-percentage point higher than reported in the summer of 2023.
What factors do you attribute to your higher than original projections for health care trend before plan design changes?
Top Tactics Employers Are Using to Mitigate Cost Increases
74%
Implement initiatives to improve health and well-being, including preventive care
71%
Negotiate higher rebates/discounts
69%
Improve navigation to quality care
66%
Change (or add additional) health and well-being vendors or make changes to contracts
54%
Implement more aggressive utilization management
54%
Change PBM or make changes to existing contract
51%
Hold vendors accountable for cost and health outcomes
51%
Change TPAs or make changes to existing contracts
About the Updated Health Care Trend Projections Survey
Fifty-four employers responded to this survey, conducted between November 29, 2023 and December 13, 2023. This survey examines how health care trend projections have changed since the summer.
Updated Health Care Trend Projections
More Topics
Articles & Guides
Cost Management
Pharmacy
Pharmacy/Prescription Drugs
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