The Kaiser Family Foundation’s (KFF) 2024 Employer Health Benefits Survey offers a comprehensive snapshot of the current state of employer-sponsored healthcare in the U.S. Covering over 154 million nonelderly Americans, employer-sponsored plans are a cornerstone of healthcare delivery. The survey highlights trends such as rising premiums, shifting plan designs and the increasing prevalence of high-deductible health plans (HDHPs).

For employers, the findings confirm the challenges from managing the ever-increasing cost of coverage, maintaining quality coverage and ensuring compliance with evolving regulations. For employees, it underscores growing financial pressures from higher out-of-pocket costs.

Key Takeaways from the Kaiser Survey

• 2024 – Rising Premiums and Cost Burden:
  • Average annual premiums increased by 6% for single coverage ($8,951) and 7% for family coverage ($25,572), with family premiums up 24% over five years. Workers contributed an average of 16% of the cost ($1,368) for single coverage and 25% ($6,296) for family coverage.
  • 87% of covered workers were enrolled in a plan with a general annual deductible, up from 80% ten years ago, and the average deductible for single coverage was $1,787, up from $1,217 ten years ago (47%).

The survey results show that from 2014 to 2019, employers raised employee contributions (25%) consistent with the increase in the cost of coverage (22%). However, from 2019 to 2024, employers shouldered the majority of the 24% increase in premium, raising worker contributions only 5% during the most recent five year period.

So, while the relief provided to workers was noteworthy, and while averages can be deceiving, the survey’s ever increasing costs are a sure sign of financial strain for both employers and their employees.

• Prevalence of High-Deductible Health Plans (HDHP):
  • HDHPs covered 27% of surveyed workers. Even though the minimum deductible required to contribute to a Health Savings Account was $1,600, the average deductible for all HDHP’s (HSA & HRA) was $2,666. The average cost of single HDHP coverage was 12% lower than the average cost of single PPO coverage ($8,275 versus $9,383). The average employer contribution to an HSA was $705, $1,724 to an HRA – offsetting a significant portion of any difference in deductibles.

What These Trends Mean for Employers and Employees

The survey paints a complex picture for employers trying to balance cost containment with providing competitive benefits. Rising costs challenge employers to find sustainable solutions.

Employees, meanwhile, face financial uncertainty as they encounter balance billing, out-of-network charges and gaps in coverage. Further, various surveys show American workers have taken on significant levels of debt, and, that the majority live paycheck to paycheck – with no savings set aside in anticipation of out-of-pocket medical expenses. These challenges are particularly pronounced in scenarios involving unexpected medical costs, such as out-of-network emergency care or disputed claims.

How aequum Helps Employers and Employees

aequum specializes in addressing the financial and operational burdens highlighted by the Kaiser survey. aequum’s tech-driven approach and legal expertise provide targeted solutions to ensure fairness and cost efficiency in employer-sponsored healthcare plans.

• Defending Against Excessive Balance Billing:
  • aequum protects self-funded health plans from unreasonable charges, leveraging its expertise to ensure employees aren’t left vulnerable to unexpected medical bills.
• Overpayment Recovery:
  • Overpayments are a significant financial drain on employer-sponsored plans. aequum identifies and recovers these funds, redirecting savings back to employers.
• Navigating High-Deductible Plans:
  • With HDHPs on the rise, aequum helps ensure that plan designs are properly structured when offered as one of multiple choices, reducing financial stress while maintaining cost-effectiveness for employers and employees alike.
• Compliance and Plan Optimization:
  • Employers face increasing regulatory scrutiny from the No Surprises Act and the new cost transparency requirements. aequum’s expertise keeps plans compliant and optimized for both legal requirements and financial efficiency. Certain plan designs, when coupled with aequum participant representation, are typically far more effective cost containment solutions when compared to traditional PPO options.
• Custom Technology Solutions:
  • Using advanced tools, aequum simplifies claims management, tracking disputes and generating actionable insights. This proactive approach offers faster resolutions and greater cost savings.

Empowering Employers and Protecting Employees

As healthcare costs continue to rise, employers need innovative partners to address these challenges head-on. While the cost of single coverage has remained relatively level at 11% of median wages over the past ten years (2014 – 2024), that was achieved only through increases in point of purchase cost sharing (e.g., deductibles, copayments, coinsurance, etc.) The KFF survey highlights the pressing need for cost containment and equitable healthcare delivery. aequum is uniquely equipped to guide employers through these challenges.

By combining legal expertise, technology and a commitment to fairness, aequum ensures that employers can provide high-quality, affordable coverage while shielding employees from unexpected financial burdens. Employers looking to manage rising costs and protect their employees can turn to aequum for tailored solutions.

Contact aequum to learn more about how its innovative approach can advance your health benefits strategy.