Consultants to Contact
- Allison Musso - Vice President & Consulting Actuary (Dallas)
- Bonnie Albritton - Vice President & Principal (Dallas)
- Brian Rankin - Vice President & Principal (Washington, D.C.)
- Brian Stentz - Vice President & Principal (Dallas)
- Cabe Chadick - President & Managing Principal (Dallas)
- Chris Merkel - Senior Vice President & Principal (Kansas City)
- David Dillon - Senior Vice President & Principal (Dallas)
- Daniel Moore - Vice President & Senior Consulting Actuary (Dallas)
- David Palmer - Vice President & Principal (Baltimore)
- Glenn A. Tobleman - Executive Vice President & Principal (Dallas)
- Heather Robinson - Senior Consultant & Director - Underwriting (Kansas City)
- Jamie Fender - Vice President & Consulting Actuary (Dallas)
- Jason Dunavin - Vice President & Senior Consulting Actuary (Kansas City)
- Jeffrey D. Lee - Vice President & Consulting Actuary (Kansas City)
- Josh Hammerquist - Vice President & Principal (Dallas)
- Jing Qian - Vice President & Consulting Actuary (Dallas)
- Jacqueline Lee - Vice President & Principal (Dallas)
- Kevin Ruggeberg - Vice President & Senior Consulting Actuary (Dallas)
- Kim Shores - Vice President & Principal (Kansas City)
- Muhammed Gulen - Vice President & Legal Consultant (Dallas)
- Moshe Nelkin - Senior Consulting Actuary (Dallas)
- Mark Stukowski - Vice President & Principal (Denver)
- Patrick Glenn - Vice President & Principal (Kansas City)
- Robert Dorman - Vice President & Consulting Actuary (Dallas)
- Traci Hughes - Vice President & Senior Consulting Actuary (Dallas)
- Tom Roberts - Vice President & Consulting Actuary (Dallas)
- Vickie Goodman - Vice President & Director - Compliance (Kansas City)
Testimonial
Changes in the healthcare industry are driven by a myriad of factors, such as advancements in technology, treatment innovations, policy and regulatory changes, economic shifts and more.
When changes happen, it can affect how insurance companies plan and price insurance products, as well as how benefits managers choose packages for their organization's employees. Moreover, constant change necessitates benefits managers to remain aware of trends that may influence how they do their jobs.
Here, we'll explore four of the top health insurance trends for 2024 and discuss how they are (and could) affect the state of employee benefits for managers and insurance companies alike.
Navigating Employee Benefits: 4 Key Trends
From cost increases to digital transformation, the healthcare industry has, and is, undergoing significant changes. While it's difficult to nail down all the most important trends in healthcare, these four are perhaps the most important pacesetters to know about going into the new year:
- Cost Increases, Inflation and Interest Rate Volatility
- Digital Transformation
- Increasing Focus on the Behavioral Health and Well-Being of Employees
- Increasing Need for Cost Containment

1. Cost Increases, Inflation and Interest Rate Volatility
Healthcare costs in the United States are on the rise and have been for quite some time.
Rising healthcare costs lead to higher premiums, deductibles and out-of-pocket expenses for both employers and employees. In fact, 48% of insured adults have expressed concern about paying their insurance premiums — meaning even those who have coverage are not immune to rising costs, according to the Kaiser Family Foundation.
With a majority of working Americans (76%) saying they're stressed about their personal finances, navigating this trend with care can be challenging. Fluctuating market conditions and economic uncertainty can strain company budgets and potentially result in a reduction in the scope or quality of health coverage being offered to employees, which may increase employee stress levels.
For insurance companies, increased healthcare costs may lead to higher claim payouts, which can impact profitability and potentially necessitate adjustments to premium rates.
When interest rates are low, insurance companies face challenges in achieving favorable returns, which can affect their profitability. In turn, this could influence the premium pricing strategies for an insurer.
For employers, interest rate changes may affect the funding and investment performance of employer-sponsored benefit plans, such as pension plans and retiree health benefit programs.
2. Digital Transformation
Digital transformation is happening across all industries at different paces. In insurance and benefits, employers and insurance companies leverage data analytics to gain insights into employee health and behavior. This, in turn, allows for the customization of health benefits to cater to individual needs. The utilization of technology not only enhances the understanding of employees' requirements but also plays an important role in promoting overall well-being and preventive care.
Furthermore, the adoption of telemedicine has surged. While most popular during the global health crisis, with the number of visits growing exponentially from 840,000 in 2019 to 52.7 million in 2020, according to The Journal of the American Medical Association, usage has slowed down once again.
However, the American Medical Association proposes that with estimated physician shortages from now through 2034, telehealth will rise in popularity once again as a proposed solution.
In short, the service provides employees with convenient access to healthcare services. Insurance companies are incorporating virtual care options into their offerings, and employers are increasingly including telemedicine benefits in their health plans, enhancing access to medical consultations and reducing healthcare costs.
3. Increasing Focus on the Behavioral Health and Well-Being of Employees
Employers and insurance companies are placing greater emphasis on preventive care and wellness programs. According to Wellable Labs, employers are investing more in programs that will increase employee well-being:
- Mental health (90%).
- Stress management/resilience (76%).
- Mindfulness/meditation (71%).
As a result, health benefits packages may include coverage for preventive services, health screenings and wellness initiatives to encourage employees to adopt healthier lifestyles. Insurance companies may offer discounts or incentives for policyholders who actively engage in wellness activities.
The recognition of mental health as a crucial component of overall well-being has led to an expansion of mental health coverage in employer-sponsored health plans. Insurance companies are adapting by offering comprehensive mental health benefits, including counseling services, mental health apps and employee assistance programs.
4. Increasing Need for Cost Containment
58% of insurers anticipate a higher or significantly higher upward trend in medical costs over the next three years, according to a 2024 Global Medical Trends Survey.
Employers are compelled to strategically design health benefits that balance the needs of employees with cost considerations. This may involve offering high-deductible health plans, implementing cost-sharing measures and exploring innovative benefit structures.
Insurance companies work closely with employers to develop cost-effective plan options that provide value without compromising coverage quality.
To achieve this, employers will have to negotiate with insurance companies to secure competitive rates and favorable terms for health benefit plans. Insurance companies, on the other hand, must collaborate with healthcare providers to negotiate pricing and reimbursement structures.
These negotiations are crucial in achieving cost containment goals while maintaining the quality of care that many Americans have come to expect — and deserve.
Manage Health Benefits With Professional Guidance
Navigating the dynamic landscape of health insurance requires a keen understanding of prevailing trends. From the increasing embrace of digital technologies to the emphasis on well-being and preventive care, staying informed is key to making sound decisions. Thus, a proactive approach will be instrumental in securing comprehensive and cost-effective health coverage for employees.
Lewis & Ellis is equipped with the knowledge to navigate the changing healthcare landscape to understand and manage health benefits.
Through careful financial analysis, we can help determine how trends like these are impacting healthcare costs, premium rates and market dynamics to aid insurers and employers in making more informed decisions about health benefits plans.
Curious how Lewis & Ellis can help you? Contact us today.