Health insurance and the healthcare industry continue to change year after year, thanks to policy and regulatory changes, advancements in technology and medical science, treatment innovations, inflation, and more. These changes can impact how insurance companies, employers, and individuals navigate health insurance in the United States, so it’s important for everyone to be aware of what’s happening in the industry.
There’s no guarantee what the future of health insurance holds, but we’ve noticed some health insurance trends that are shaping the industry in 2024 and beyond.
1. Emphasis on the Importance of Behavioral & Mental Health
Behavioral and mental health is a growing concern in the United States thanks to a significant lack of access and awareness, so insurance providers will continue to emphasize the critical importance of mental health while also creating innovative ways to connect patients with healthcare providers. In response to these concerns, many insurers are including behavioral health services, such as counseling and therapy, into their health insurance policies.
2. Focus on Health Equity
We expect to see employers and health insurance providers alike increase their investment in health equity, which is the process of reducing disparities and ensuring favorable health outcomes for all individuals, regardless of circumstances or background, in 2024. These efforts are particularly focused on underserved populations, including people of color, socioeconomically disadvantaged patients, and other minorities to make sure benefits and access to care are equitable.
3. Increasing Prescription Costs
A significant concern for individuals, employers, insurers, and legislators in 2024 is rising prescription drug costs. This year—and likely in years to come—health insurance providers and employers will have to work together to ensure individuals have access to the medications they need while also navigating the complexities of drug pricing.
4. Rising Health Insurance Premiums
Across the United States, employers and individuals are expected to see rising health insurance premiums in 2024, with larger increases than in recent years. These increased expenses are likely due to a number of factors, including medical inflation, wider availability of treatment, and expensive medications.
5. Expansion of Telemedicine & Telehealth
The use of telehealth and telemedicine spiked in 2020 during the height of the COVID-19 pandemic, and it continues to expand in 2024. These services are a time-saving benefit for individuals and also help ease the burden on healthcare providers. Additionally, telemedicine is especially beneficial to individuals in rural areas or underserved populations, where it can be difficult to access in-person healthcare providers.
Insurance companies and employers see the benefit of including telehealth services, virtual care options, and telemedicine benefits as part of their policies—and will continue to incentivize and encourage policyholders to take advantage of telemedicine services for non-emergency care.
6. Employers Reviewing Relationships with Healthcare Providers
2024 is another year of rising costs, especially regarding medical expenses. Employers dealing with economic shifts and inflation will start looking for ways to cut costs and renegotiate partnerships. We anticipate many employers will review their existing relationships with insurers, consultants, pharmacy benefit managers (PBMs), brokers, and digital healthcare vendors and reevaluate their return on investment.
In response, health insurance companies will likely have to demonstrate their value to employees and emphasize how coverage leads to measurable clinical and financial results for their workforce.
7. Innovative Insurance Products
From mobile apps and online portals to wearable and trackable health management technology, 2024 is the year of innovative insurance products. Individuals and employers can expect to see insurers take advantage of technological advancements, partner with technology companies, and create innovative products designed to enhance the customer experience and improve healthcare outcomes.
8. Use of Predictive Analysis & Artificial Intelligence (AI) Technology
Predictive analysis and AI technology have experienced explosive growth across all industries, including in the health insurance industry. Both insurers and employers are using AI and data analytics platforms to analyze large volumes of data, gain insights into health and behavior, and tailor coverage for the healthcare needs of each individual.
We expect to see more insurance providers use data analytics, predictive analysis, and AI in 2024.
9. More Preventative Care Services
As healthcare expenses continue to climb, more and more employers and health insurance providers are incentivizing preventative care services like regular screenings, wellness check-ups, immunizations and vaccinations, etc. Preventative care not only helps detect health issues early, leading to a better chance of successful treatment, but also often results in less costly treatment overall.
Understandably, during the COVID-19 pandemic, individuals delayed preventative care; in 2024, healthcare experts are emphasizing the importance of these essential services.
10. Personalized Health Benefits
The health insurance industry is beginning to take note of the importance of personalized healthcare. Insurers are using AI technology, historical data, and advanced analytics to customize health plans for individuals—based, for example, on their medical history, genetic predisposition, lifestyle choices, and goals.
These personalized, tailored health plans will meet the increased demand for customized healthcare and allow policyholders to receive relevant care.
11. Increasing Need for Cost Containment
With medical expenses expected to keep increasing over the next few years, employers are searching for ways to contain costs.
Insurance companies will continue to negotiate prices and reimbursement structures with healthcare providers, and employers offering health insurance coverage to their employees will likely look for ways to secure better rates and terms. The goal is to design a health insurance plan that contains costs while continuing to provide adequate coverage for employees.
12. Post-Election Benefits Shakeup
The presidential and congressional elections later this year will likely have a direct impact on the healthcare and health insurance industries. From drug pricing legislation and medical debt to treatment access and healthcare costs, there are many different issues that could be impacted by election results. We expect at least some form of post-election benefits shakeup in 2024.
Contact Melton McFadden for Health Insurance Coverage in Michigan
At Melton McFadden, our experienced insurance professionals can help you develop a health insurance plan that protects your finances, family, and peace of mind. We are ready to answer your questions and guide you through the process of identifying coverage essentials, finding gaps in your current insurance plan, and creating a solution that works best for you and your dependents.
Whether you are looking to expand your current healthcare coverage or sign up for a new policy, we’re here for you every step of the way.
Contact us today or request a free quote to get started.
