News Brief: Inflation Rate Slows to 2.9% in July
The U.S. Bureau of Labor Statistics (BLS) reported that the consumer price index (CPI) rose 2.9% year over year in July, down from 3% in June. This is the first time the monthly reading has dipped below 3% since March 2021, an additional sign that the inflated pressures are waning and that the Federal Reserve (Fed) may start cutting interest rates.
“Federal Reserve officials have reason to be increasingly concerned about softening of the job market, the other part of its dual mandate of stable prices and maximum employment.”
-Mark Hamrick, Bankrate senior economic analyst
News Brief: White House Announces Results of Medicare Drug Price Negotiations
On Aug. 15, the Biden administration announced that the Department of Health and Human Services (HHS) reachedagreements with top drugmakers to lower prices for the first 10 drugs subject to Medicare price negotiations. After months of negotiation beginning last October, the agreed-upon drug discounts range between 38% and 79%. The new pricing for Medicare Part D enrollees goes into effect on Jan. 1, 2026.
The Peterson-Kaiser Health System Tracker found that 3.4 million employees, in addition to Medicare recipients, used at least 1 of the 10 newly negotiated drugs.
News Brief: Job Openings Dropped Slightly in June
The Bureau of Labor Statistics (BLS) recently released its June Job Openings and Labor Turnover Summary. The report revealed that there were 8.18 million job openings in June, a decrease from 8.23 million in May. This is a total decrease of 941,000 over the year. The job openings rate held at 4.9% in June.
“Labor demand remains concentrated in just a few industries,workers are hunkering down and feeling less confident about job availability, and businesses are more reluctant to bring on new hires.”
–Wells Fargo economists Sarah House and Aubrey George
News Brief: Employers Plan to Raise Wages 3.9% in 2025
The latest Salary Budget Planning Report released by Willis Towers Watson (WTW) shows that salary budget increases areexpected to rise by 3.9% in 2025. The overall median pay raise for 2024 dropped to 4.1%, compared with 4.5% in 2023.Although these expected wage increases have diminished since 2023, this figure remains high compared to many previous paycycles, where 3% was common.
“As the workplace stabilizes and employers look more toward the future, companies are reviewing and updating their compensation philosophies to ensure they align with business strategy.”
–Lesli Jennings, North America leader of Work, Rewards and Careers,WTW
News Brief: Report Finds Majority of Employees Prefer to Stay in Current Job
A new survey by Willis Towers Watson (WTW) found that 72% of employees are choosing to stay with their employers. This is in contrast to recent periods when the majority of workers were looking for new jobs, such as during the “Great Reshuffle” in 2022. WTW’s 2024 survey collected information from 10,000 U.S. employees working at medium and large private-sector companies.
“The war for talent is no longer just about pay; benefits matter, and the ability to choose those benefits is important for adapting to employees’ changing needs.”
-Cecile Chang, global growth leader of House & Benefits, WTW
News Brief: Inflation Cooled Further in June
The U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) rose 3% year over year in June, declining from 3.3% in May. This is the first time since May 2020 that the monthly rate has shown a decrease.
“With another good CPI print under their belt, the window is open for the Federal Reserve to cut interest rates as early as September,and potentially again in December, assuming the inflation data continues to cooperate.”
-Skyler Weinand, chief investment officer, Regan Capital
News Brief: Heart Disease Is Now Second Costliest Ailment for U.S. Employers
A new report by independent stop-loss provider Sun Life revealed that cardiovascular disease rose to second place on the list of highest stop-loss claim reimbursements during 2020-23. This rise is significant, as the condition surpassed blood cancers for the first time in 12 years since the report began.
Sun Life’s annual report analyzed 60,000 stop-loss claims from a member database of 6 million people. Nearly three-quarters(72%) of all stop-loss claims came from the top 10 conditions, and 37% of claim reimbursements came from the top three conditions.
News Brief: U.S. Employers to Spend $1.3 Trillion on Health Benefits in 2024
Health care spending in the United States has been trending upward for decades, and analysts at the Centers for Medicare and Medicaid Services (CMS) predict that total employer spending this year will increase by 5.8% to $1.3 trillion.
Furthermore, spending per participant will increase by 6% to $7,459. However, due to increased health care expenses and cost of living, enrollment is projected to decrease by 0.2%, down to 178 million.
News Brief: Over 80% of Employers Will Add or Improve Benefits in the Next Year
A new report by health care benefits company Lively found that 81% of organizations plan to add or improve employee benefits in the next year to better recruit and retain employees. Furthermore, the report showed that employee experience, feedback and ease of use matter the most when benefits leaders decide to select or renew with benefits providers.
“Employee benefits are a critical decision for companies and impact their goals and bottom line. They go far beyond health insurance, as the right package of flexible benefits enables employees to afford everyday expenses, plan for the future and counter financial stress.”
-Alex Cyriac, co-founder and CEO of Lively
News Brief: Most Hospitals Aren’t Complying With Federal Price Transparency Rules
A new PatientRightsAdvocate.org (PRA) report found that only one-third (34.5%) of hospitals were fully
compliant with the federal Hospital Price Transparency Rule. Of the 2,000 hospitals that were reviewed nationwide, only 689 were fully compliant. The latest results were virtually unchanged from last year’s, with 36% in compliance.
“Employer and union plans can use pricing and claims data to improve their plan designs and direct members to lower cost, high-quality facilities. However, continued noncompliance impedes this ability.”
-The PRA report
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
