Health insurance premiums are expected to increase next year. Millions of Americans will find out soon just how much their premiums are going to increase next year and eat into their income, or if their employer will take on the cost.
Economists, business leaders, and healthcare industry experts are warning that the wage, revenue, and supply chain pressures that hammered hospitals and clinics during the Covid pandemic may soon send health coverage and out-of-pocket medical bills through the roof.
Increases are likely to be big according to industry analysts and experts. But the financial hit is completely dependent on how much of the cost employers will bear.
Experts said that by looking at the data from previous recessions, history shows that workers should prepare for an increase in health insurance.
After the last recession of 2008, employers had their workers pay for a larger chunk of their premiums rather than take on the responsibility themselves.
From 2008 to 2010, the average worker’s contribution increased by a shuddering 25 percent. This added an inflation-adjusted $244 more to their annual bills. This year, employers may once again ask workers to shoulder the cost and pay up. The United States healthcare system is notorious for being costly.
In the long run, as the economy grew after the Covid pandemic, so too did employers’ contributions to premiums. Experts believe that this is because companies had to vie for workers in a tight labor market, and taking on the costs of healthcare was a big perk to potential hires.
After Covid, employers wanted to offer benefits that would recruit or retain the best workers possible. And one massive thing that frustrates workers or turns them off to companies is decreased compensation by an increased health insurance cost.
A dramatic spike in health insurance costs would also become a major challenge to the post-midterm election government, especially to the White House, as president Joe Biden navigates a fractured political environment and deep economic challenges.
The U.S. healthcare system is one of the most prominent issues facing everyday Americans.
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