Health benefit cost rose by 4.5% in 2024, with an increase of 5.8% predicted for 2025

Change in total health benefit cost per employee compared to CPI

Chart: *Projected. 2021 cost trend was disrupted by pandemic-related fluctuations in utilization. Source: Mercer’s National Survey of Employer-Sponsored Health Plans (beginning in 2020 results are based on employers with 50 or more employees); Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April) 1993-2024. The survey found that the average per-employee cost of employer-sponsored health insurance reached $16,501 in 2024, an increase of about 5% over 2023. Employers expect cost to rise about 6% in 2025 after making planned changes – they reported cost would rise by nearly 8% if they made no changes.