2024 Health Insurance Premium Surge: What Brokers Need to Know

It has been a whirlwind year in the health insurance market. Premiums have surged, and as a result brokers are in the challenging position of offering clients advice and solutions in an unsettled, uncertain market.

The surge: what’s happening in 2024, and why?

According to multiple surveys, health insurance premiums are expected to increase by more than 6% in 2024. Several factors contribute to this spike.

• Postpandemic healthcare utilization: As the world moves past the COVID-19 pandemic, there has been a noticeable uptick in deferred elective procedures and routine healthcare. This increased demand for healthcare services drives up costs.
• Inflation and economic factors: General inflation has impacted all sectors, including healthcare. Rising wages for healthcare workers and increased prices for medical supplies and pharmaceuticals contribute to higher insurance costs.
• Technological advancements: Although advancements in medical technology improve patient outcomes, they also come at a high cost, which is often passed down to consumers through higher premiums.

 

Opportunities for brokers

Rising premiums challenge brokers by increasing client dissatisfaction because employers and individuals feel the financial strain. This stress heightens the need for brokers to offer detailed guidance on cost-effective options, making it essential for them to provide expert advice on a nuanced, emotionally charged topic. Additionally, competition intensifies as brokers vie for clients seeking better deals and value-added services.

These challenges come paired with opportunities, however. Brokers can differentiate themselves among their competition by offering services that extend beyond traditional insurance brokerage, such as wellness programs, telehealth services, and health savings account (HSA) management. Positioning themselves as advocates and educators can also build trust, as clients appreciate brokers who keep them informed about industry trends, regulatory changes, and cost-saving measures. Brokers who form strategic partnerships with healthcare providers, wellness program vendors, and technology companies can further set themselves apart by providing clients with integrated, cost-effective solutions.

Knowing how to extract the opportunities within these recent challenges in the health insurance market will set successful brokers apart from those who struggle to keep up.

Remember, in times of uncertainty, clients seek guidance and reassurance. Position yourself as a knowledgeable and trusted advisor, and you’ll not only weather the storm but also strengthen your client relationships and grow your business.