Health care costs have skyrocketed since the pandemic. These steps during free registration can help

About 165 million Americans get health insurance through work, yet many don’t spend much time thinking about what their employer offers in the way of benefits and whether how much will it cost.

In fact, employees spend only about 45 minutes a year, on average, deciding which benefits plan is right for them, a report from Aon found.

The open enrollment period, which usually starts from the beginning of December, is an opportunity to take a closer look at what is at stake.

And, in the beginning, the costs are rising.

The cost of health care has been rising steadily for years. Recently, there has been a noticeable jump.

For employers, cost increases are rising after the pandemic, according to WTW, the consulting firm formerly known as Willis Towers Watson. US employers project that their health costs will rise by 7.7% in 2025, compared to 6.9% in 2024 and 6.5% in 2023, the firm said.

Due to higher costs, employers are considering new ways to diversify their offerings, WTW found.

To that end, 52% of companies say they plan to implement programs that will reduce total costs, and only the majority intend to focus on low-cost suppliers and maintenance sites, which which can mean a limited network of doctors to choose from.

Currently, employers pay about 81% of health care plan costs, on average, while employees pay the rest, according to professional services firm Aon.

However, some of the higher costs will also be passed on to workers.

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About a third, or 34%, of employers expect to pass some of the costs on to employees through higher premiums or by raising co-pays in high-deductible health plans next year, the report found. of WTW found.

Costs per worker are expected to jump 5.8% on average in 2025, marking the third consecutive year of health benefit costs rising above 5%, after a decade of averaging that only about 3%, according to a separate report by consulting firm Mercer.

“These are changes that employees will feel,” said Beth Umland, Mercer’s director of health and benefits research.

For workers, health care costs are already high: Household premiums for employer-sponsored health insurance have risen 7% this year to an average of $25,572, KFF’s 2024 benchmark survey found health found. Employees are responsible for more than $6,200 of that amount, with employers picking up the rest.

“Due to the increase in costs reaching the peak after the epidemic, companies are concerned about the burden they are placing on their employees, especially as it affects decisions about insurance coverage and care,” he said. Tim Stawicki, WTW’s chief health and benefits specialist. .

Employees are often given options for choosing a health insurance plan: with a higher monthly cost, known as your premium, and a lower deductible, which is the amount you will pay. must take it out before your employer’s plan kicks in, and another option. with higher out-of-pocket costs but lower premiums.

“Most of the time when you walk into open enrollment, the first thing you see is the cost reductions and outsourcing,” said Regina Ihrke, WTW’s America’s health, equity and wellness leader. North.

When weighing options, use past years as a guide, advised Gary Kushner, chairman and president of Kushner & Company, a benefits planning and management firm.

He said you have to think: “Is it a low, middle or high class family? Have I had an event that requires intensive care or especially a lot of preventive care?”

If you only go to the doctor often, say, once a year for a checkup, you may want to choose a plan called a high-deductible plan with a low monthly cost.

Along with a highly discounted health insurance plan, more than 50% of employers also offer a health savings account, or HSA, which can help with some health care costs.

In order to use an HSA, you must have an approved health plan. The IRS defines the “high-deductible” as at least $1,650 for self-employment plans or $3,300 for family coverage for 2025.

The IRS also determines the maximum contribution allowed each year: The new HSA contribution limit for 2025 will be $4,300 for individuals, up from $4,150 in 2024, and $8,550 for families, from to $8,300 in 2024. Workers age 55 or older can make an additional $1,000. contributions exceed the annual IRS limits.

HSA contributions grow tax-free, and funds can cover out-of-pocket expenses, including doctor visits and prescription drugs, including expensive prescription drugs. body weight.

As costs continue to rise, HSAs are an important safety net for managing these out-of-pocket costs, said WTW’s Ihrke. Any money you don’t use can be rolled over each year.

“Make sure you’re thinking about how to put money into that savings account so you can use it to pay off a doctor’s bill or save it for years to come,” Ihrke explained.

During open enrollment, employees may also be offered a variety of disability and life insurance options, often included in the standard benefits package.

Employer-provided life insurance policies are usually equal to a year’s salary. You can purchase additional life insurance through your employer. This is called health insurance, or voluntary health insurance, and it’s optional coverage that you can add to your employer’s basic group plan.

With disability insurance, there are two main types: Short-term disability usually covers 60% to 70% of your basic salary and premiums are usually paid by the employer. you. Long-term disability, which usually starts after three to six months, usually takes 40% to 60% of your earnings.

Even if you have these policies at work, they may be a fraction of what you need to protect young children or other dependents.

Think about how much money is right for you and your family, then consider whether you want to buy more coverage, or supplemental insurance, through a workplace group plan or purchasing a policy yours, which is what many consultants recommend.

Other benefits may be optional but equally important these days, especially when it comes to health. Going into open enrollment, nearly 1 in 5 employees report deteriorating mental health, according to a recent Gallagher report.

“More than ever before we’re seeing employers looking to address the expanded needs of their employees,” said Tom Kelly, principal of Gallagher’s health and benefits practice, and “employees are today they want more health support.”