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International Foundation Releases Health Care Costs 2023 Survey Results
On August 15, 2023, the International Foundation of Employee Benefit Plans (IFEBP) released its report, Health Care Costs Pulse Survey: 2024 Cost Trend. The report was based on the 2023 survey of U.S. employers which projects an increase of 7.0% in health care costs for 2024.
According to the survey responses, the primary reasons contributing to an increase in health care costs include:
- Utilization due to chronic health conditions (22%);
- Catastrophic claims (19%);
- Specialty/costly prescription drugs/cell and gene therapy (16%); and
- Medical provider costs (14%).
In addition, the respondents indicated that the most effective initiatives to manage costs in 2024 would include:
- Utilization control initiatives (e.g., prior authorization, case management, disease management and nurse advice lines) (22%);
- Cost-sharing initiatives (e.g., deductibles, coinsurance, copays and premium contributions) (16%);
- Work and wellness programs (13%);
- Plan design initiatives (e.g., dependent eligibility audits, high-deductible health plans, spousal surcharges/carveouts, formulary changes) (12%); and
- Purchasing/provider initiatives (e.g., telemedicine, centers of excellence, health care navigators and advocates, coalitions and quality initiatives) (12%).
The report is available here.