In 2023, employers were forced to confront several new and enduring challenges, including rising health care costs, regulatory changes, ongoing high inflation, a competitive labor market and growing employee demands. While many of these difficulties will likely continue, understanding these challenges, as well as expected trends and areas of opportunity, can help employers develop an effective benefits strategy for the year ahead. Â
Download the 2024 Employee Benefits Market Outlook to gain insight into the specific obstacles employers must overcome this year on their path to success, the emerging trends defining the benefits landscape and the opportunities these challenges and trends present for employers to leverage creativity and enhanced communication in their benefits strategies. Â
What Are Some Employee Benefits Trends for 2024?
One of the emerging trends impacting employee benefits this year is the expanded use of specialty medications. GLP-1 drugs, for example, were originally designed to treat diabetes but are now being used heavily for weight loss. These weight loss drugs are expensive, but as the FDA approves more and more of these medications for weight loss treatment, employers will face added pressure to offer coverage for them.Â
Another trend that is defining the benefits landscape in 2024 is the growing popularity of voluntary benefits, among both employees and employers alike. These optional benefits are often employee-paid, making them a cost-effective offering for employers to incorporate into their benefits plans.Â
What Healthcare-Related Challenges Will Employers Face This Year?
Rising medical and pharmacy benefit costs will be among the top challenges employers will face in 2024. Industry surveys and reports anticipate that healthcare costs will grow between 6 and 8.5% this year, which is the largest cost increase in more than a decade.Â
In addition, pharmacy costs are expected to increase due to the rising median prices of new pharmaceuticals, high prices of existing drugs and growing utilization of specialty medications and treatments, such as weight loss drugs and gene therapy programs.
What’s Inside the Employee Benefits Market Outlook?
Inside the 2024 Employee Benefits Market Outlook guide, you’ll discover:
- Ongoing challenges impacting employers this year, including rising health care and pharmacy costs and increased compliance burdensÂ
- Emerging benefits trends, such as the rise of specialty drug use, expanded benefits programs and the return of in-person workÂ
- Areas of opportunity employers can leverage, including creative health plan design, enhanced benefits education and more
Ready to set your organization up for a successful 2024? Download your copy of the 2024 Employee Benefits Market Outlook.