M3 released its 2024 Health Care Trend Report, which looks at trends among employers ranging in size from three to more than 10,000 employees in a variety of major industry sectors.
In 2024, health benefit plan premiums grew at an overall rate of 8%. This is higher than the historical norm of 6.6% since the report began in 2004 and is the highest rate of change since 2007 (8.4%). It is also almost an entire point higher than 2023’s rate of change. The overall annual average cost per employee increased to $16,011 in 2024, a jump from $15,290 in 2023.
In south-central Wisconsin, the market experienced an increase of 8.4%, which is a jump up from a 7% change rate in 2023. The average cost of $15,887 represents an increase from $14,879 the previous year.
For the fifth year in a row, the public sector rate of change grew more slowly than that of the private sector. M3 public sector clients experienced an overall cost increase of 6.2% compared to 8.3% in the private sector. The average private sector annual cost per employee increased to $14,715 in 2024, up from $14,021 in 2023, and the 2024 public sector annual cost per employee rose to $20,779 from $20,048 in 2023.
