Employers Enhanced Health Benefits in 2024, Adding Coverage for Weight-Loss Medications and IVF Despite Growing Health Costs, Mercer Survey Finds
The survey found that the average per-employee cost of employer-sponsored health insurance reached
“Employers doubled down on strategies to manage cost growth while finding ways to improve key benefits to support employees and their families in 2024, including expanded coverage for GLP-1 medications and fertility treatments,” said Ed Lehman, Mercer’s US Health Leader.
The fastest-growing component of health benefit cost continues to be prescription drugs. Pharmacy benefit cost rose
While nearly all health plans cover GLP-1 drugs for diabetes, that is not the case for obesity treatment. However, in 2024, coverage for obesity drugs rose to
“GLP-1 medications may turn the tide on the obesity epidemic and positively impact downstream medical costs,” said Tracy Watts, Mercer’s National Leader for US Health Policy. “Cost is clearly a concern, and employers are adding authorization requirements to ensure the medications are used by members who will benefit the most.”
Employers are also managing the rising cost of specialty drugs, including expensive gene and cell therapies for conditions such as hemophilia and sickle cell disease. The most common strategy to curb costs is working with medical carriers and pharmacy benefit managers to implement clinical management programs for patients.
Addressing affordability with more medical plan choices
Concerns about affordability have led employers to add medical plan choices that accommodate different financial and medical needs. This year,
One lower-cost option is an Exclusive Provider Organization (EPO) plan, which uses a closed provider network to help keep cost down. In 2024,
Promoting higher quality care
Many of the EPO plans offered by the largest employers (
Another way to guide employees to higher quality, cost-efficient care is by providing specialized health navigation or advocacy services. Nearly half of all large employers (
Family-forming benefits
Coverage for fertility treatment is becoming increasingly common, with in vitro fertilization (IVF) now covered by
Most large employers offering fertility benefits (
Cancer support and other benefit enhancements
Employers are increasingly providing specialized support to employees dealing with cancer, including prevention and early detection campaigns, Centers of Excellence, case management, caregiver resources and workplace support. Two-thirds of large employers now provide at least one of these resources, with
Virtual primary care, offering convenient, low-cost access to physicians via text messaging, is a popular benefit that can enhance healthcare accessibility. In 2024,
About Mercer’s National Survey of Employer-Sponsored Health Plans
Now in its 39th year, Mercer’s National Survey of Employer-Sponsored Health Plans included 2,194 employers in 2024. Results are weighted to represent all US health plan sponsors with 50 or more employees. Results are examined separately for employers with 500 or more employees (“large” employers) and those with 20,000 or more employees (“largest” employers). The survey was fielded from June 12 through August 16, 2024.
About Mercer
Mercer, a business of Marsh McLennan (NYSE: MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of
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Source: Mercer