Employers and employees in Wichita, Kansas, are bracing for significant increases in healthcare benefit costs, with reports indicating some plans could see rises approaching 10 percent. Taylor Langlois, Co-Owner of Trinity Assurance Group, noted that it has been some time since such steep hikes have been observed in healthcare costs.
Recent figures highlight this trend, with the Kansas State Employees Health Plan experiencing a 7.5 percent increase as of July. The reasons behind this surge are multifaceted, according to Langlois. He pointed out that increased utilization of health plans is a primary factor. Employees are not only using their benefits more frequently but are also encountering higher cost-sharing amounts.
Another significant contributor to this inflation is the rising demand for GLP-1 medications, such as Ozempic and Mounjaro. Originally designed to help manage diabetes and obesity, these medications have gained popularity as weight-loss solutions, further straining healthcare costs. Langlois also emphasizes inflation as a disruptor in the landscape of healthcare expenses, compounding the issues faced by both employers and employees.
In light of these rising costs, experts suggest several strategies for individuals to better prepare financially. Dr. Larry Straub, an Economics Professor at Newman University, recommends considering health savings accounts (HSAs) as a means to mitigate the financial burden. HSAs allow individuals to save money pre-tax, invest it, and retain the account even after switching employers, providing a crucial financial buffer.
Moreover, flexibility in insurance options can play a critical role in managing expenses. Straub advises exploring higher deductible plans, which tend to come with lower monthly premiums. This approach can result in significant savings, although it requires careful consideration of individual healthcare needs and potential costs.
Being proactive about personal health is another crucial aspect, as maintaining overall wellness can help individuals avoid costly emergency visits.
As the community adjusts to these anticipated changes, both employers and employees are urged to stay informed and seek out strategies to manage their healthcare costs effectively.
