The average cost of employer-sponsored healthcare coverage is expected to jump 9% from 2024 to 2025, according to estimates from Aon Plc published Aug. 15.
The professional services firm used data from 950 U.S. employers representing around 6.7 million employees to make its estimates.
Here are five trends to note:
- Healthcare costs per employee are projected to surpass $16,000 per employee in 2025. In 2024, employers budgeted an average of $14,823 per employee for healthcare costs.
- Rising employment levels and inflation are pushing medical costs higher, Debbie Ashford, North American chief actuary for health solutions at Aon, said in an Aug. 15 news release.
- In addition to medical costs, prescription drug costs are also on the rise. Additional demand for GLP-1 drugs, which can cost more than $1,000 a month, are expected to account for 1% of the 9% increase in costs in 2025.
- Healthcare costs for employers increased by 6.4% from 2023 to 2024, according to Aon. Employees contribute $4,858 to their health plans on average in 2024, a 2.9% increase from 2032.
- Increases between 2023 and 2024 varied by industry. Technology and communications had the overall highest increase, with plan costs rising 7% on average. Retail had the lowest increase, with plan costs rising 1.9%.
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