Employee Healthcare Premiums Expected to Rise in 2014

Starting next year, employees may encounter a significant increase in healthcare premiums. Companies currently offering health insurance to workers are expected to add nearly $5,000 in premiums, deductibles, and co-payments to current health coverage costs.

Aon Hewitt also revealed a projected increase in average health care costs by 6.7 percent in 2014, amounting to $11,176 per employee. Despite the single-digit increase, health cost rates for employees continue to increase by double-digit percentages. Premium payments are also on the rise: employees are projected to pay 22.4 percent of this total, or $2,499. Overall, worker premiums are jumping nearly ten percent from this year’s rate of $2,303.

In addition to the increase in premium payments, employees can expect a rise in out-of-pocket costs including co-payments and deductibles. These costs will increase from this year’s rate of $2,239 to $2,470 in 2014, a projected increase of more than ten percent. As a result, many workers will get a glimpse of rising healthcare costs for the coming year whether they opt to renew current plans or choose new benefits during fall open enrollment.