Do you know the three new pressures increasing the cost of your health plan? Here is a simple outlook on the 2024 renewal season.

The rising cost of healthcare in the United States has been a concern for many years. Legislation and administrative loads, and now inflation, changes in the healthcare market, and a lack of providers for mental health are starting to contribute to the rising cost of healthcare. Let’s examine some of these new pressures and how they impact the cost of healthcare.

1. Inflation:

Inflation is the increase in the general price level of goods and services in an economy over a period of time. In the healthcare industry, inflation affects the cost of medical supplies, equipment, and drugs. The rising cost of healthcare is partly due to the increasing cost of medical supplies and equipment, and since COVID, exponential increases in staffing demands. The cost of drugs has also risen significantly in recent years, particularly for specialty drugs used to treat complex conditions. As a result, healthcare providers have to increase the cost of healthcare services to cover these rising costs.

1. Humana leaving the employer’s healthcare market in 2024:

Humana is a health insurance company that provides health insurance to employers and individuals. In 2024, Humana is set to leave the employer’s healthcare market, which will have a significant impact on the cost of healthcare. Humana is one of the largest health insurance companies in the country, and its departure from the employer’s healthcare market will leave many employers with one less option. Fewer options in the market have never lowered costs. This will force employers to seek alternative health insurance plans, which could result in higher premiums and deductibles for employees.

1. Lack of providers for mental health:

The lack of providers for mental health is another factor that contributes to the rising cost of healthcare. Mental health conditions are prevalent in the United States, with approximately one in five adults experiencing a mental health condition each year. However, there is a shortage of mental health providers, particularly in rural areas. This shortage of providers results in long wait times for mental health services and higher costs for those who do receive treatment. Additionally, individuals who do not receive treatment for mental health conditions are more likely to require more expensive medical treatment, further contributing to the rising cost of healthcare.

In conclusion, the rising cost of healthcare is expected to make the 2024 renewal cycle more challenging than ever before. Some carriers hope you will wait to see your renewal to limit your ability to make meaningful changes. Employers need to be asking now what can be done to address the growing trends. As a country, these factors will require significant investment and changes in policy to ensure that healthcare is affordable and accessible to all Americans. Employers, on the other hand, can take steps now to ensure their employees have what is needed. At Hartin Dynamics and HUB, we are excited that we have found a better path and would love to share how it can apply to you and your organization. The cost of doing nothing this year could have a significantly negative impact.

Dennis Hartin

President of Hartin Dynamics Powered by HUB International

Categorized in: Work

This post was written by Elevate, Inc.