Health care costs for workers rising

Investment Analysis Clubs Macro Economic Trends and Risks
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https://www.nytimes.com/2025/09/04/health/health-care-costs-employers-workers.html

Health Care Costs for Workers Begin to Climb

A survey shows employers expect a sharp increase in benefit costs for next year, and many will want workers to shoulder more of the burden.

By Reed Abelson, The New York Times, Sept. 4, 2025

Employees of large and small companies are likely to face higher health care costs, with increases in premiums, bigger deductibles or co-pays, and will possibly lose some benefits next year, according to a large survey of companies nationwide that was released on Thursday.

The survey of 1,700 companies, conducted by Mercer, a benefits consultant, indicated that employers are anticipating the sharpest increases in medical costs in about 15 years….

With the projected increases, this is the fourth consecutive year in which employers — and their workers — have faced significantly higher costs for health insurance, with next year representing the biggest jump since 2010….’

Without making any changes to benefits — which would involve moves like shifting more costs to workers or reducing benefits — employers said they expected next year’s increases in health costs to reach nearly 9 percent on average. By altering plans, they projected increases overall of 6.5 percent on average in health costs next year.

A quarter of those surveyed projected double-digit increases for 2026 even after changes to plans…. [end quote]

Many employers will pass at least some of the increased costs to workers, which will mean less income for other consumer spending.

Employers may absorb some which will mean reduced profits.

Wendy

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Have also read that the under 65 crowd that gets their health care coverage from the ACA will be dealing with hefty premium increases, as the current administrations budget bill slashes funding for that subsidy.

It is hard not to think that costs are going up on virtually everything that Americans buy. It is hard to reconcile how that path is going to make America great again, but maybe I’m missing something. Americans might want to plan on having less disposable income in the next few years. And since consumer spending makes up a large portion of the American economy, will the stock market suffer as well ?

Feels like we are getting darn close to the proverbial “caught between a rock and a hard place”. The current administrations tax policy will very likely shoot the national debt ever higher, if that matters to anyone. Perhaps it matters to the bond market, and if the buyers of Treasuries start slow rolling their purchases and drive up interest rates, the ever increasing annual interest charges on the national debt are going to be a major problem. But hey, can kicking is a strength of American policy.

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There was a thread a while back on “health insurance increasing from 18% to 74%, which is it?”

It’s an average 18% if you have a current, for-profit private health plan, plus an additional 74% for some people losing their Obamacare refundable tax credit. (This latter group will likely become uninsured.)

Give them what they voted for good and hard.

intercst

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I think you’re right, that under 65 group will get hit hard ( 74%, ouch ! )

Most will just drop insurance. Use the emergency room visit for medical treatment. That’s expensive for the American taxpayer.
I’ll be interested in watching the national debt. The current President has loudly boasted about how he will easily bring it down. I’m going to hold him to that promise,lol. I expect to see it soar, assuming the books are not cooked.

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