Medical Insurance coverage Premiums Could Harm Your Pockets In 2025

by Jameelah Mullen

October 18, 2024

Americans using employee-sponsored insurance plans can expect to see increases in premiums, co-pays, and deductibles.

Employees can expect to see a significant jump in their healthcare premiums next year. According to consulting firm WTW, U.S. employers project their healthcare costs will increase by 7.7% in 2025, compared with 6.9% in 2024 and 6.5% in 2023.

On average, employers subsidize approximately 83% of healthcare costs, and employees pick up the remaining balance. According to consulting firm Mercer, 53% of the employers surveyed plan to shift these expenses to employees. Workers can expect to see increases in premiums, co-pays, and deductibles next year. The cost per employee is expected to increase by approximately 5.8% in 2025.

Open enrollment season is upon us. If you are one of the millions of Americans who receive healthcare coverage through your employer, now may be a good time to reevaluate your coverage. Here are some factors that you should consider before choosing a plan.

Gary Kushner, chair and president of Kushner & Company, a benefits design and management company, says that employees should ask themselves the following questions :

“Am I a low-, medium- or high-claims family? Did I have an incident that required acute care or basically lots of preventative care?” Kushner told CNBC.

If you usually only go to the doctor for a yearly check-up, you may be able to choose the high-deductible plan with a lower monthly cost.

Employees with high deductible premiums could use their employer’s health savings account benefits. To take advantage of an HSA, one must have an eligible high-deductible health plan. The IRS defines high-deductible as not less than $1,650 for self-only coverage or $3,300 for family coverage.

As medical costs continue to increase, HSAs can help to manage out-of-pocket expenses. Any unused funds will roll over to the following year.

Additionally, experts advise employees to take advantage of voluntary benefits such as gym discounts, childcare assistance, stress management, and financial coaching. These benefits can not only help relieve financial stress but also improve work-life balance and overall health outcomes.