How will health insurance premium increases for employees in 2024 impact paychecks? How will a mid-year pay increase help defray the cost?
The net impact of these changes will vary by employee, so two examples are provided below:
A full-time employee with a $40,000 annual salary will see their annual salary increase by 2% or $800. Depending on the health care plan that the employee is on, their annual health care premium will increase anywhere from $28 per year to $486 per year. Their annual net pay would increase between $314 to $772.
A full-time employee with a $70,000 annual salary will see their annual salary increase by 2% or $1,400. Depending on the health care plan that the employee is on, their annual health care premium will increase anywhere from $28 per year to $486 per year. Their annual net pay would increase between $914 to $1,372.
Bi-weekly paycheck impacts will vary based on employment status, payroll schedule, and other benefits/deductions.
The table below shows the annual cost changes for employee health care premiums from 2023 to 2024:
| Full-Time Employee Annual Rate Change from Plan Year 2023 to Plan Year 2024 | |
|---|---|
| Select | |
| Employee Only | +$115 |
| Employee + Children | +$360 |
| Employee + Spouse | +$366 |
| Employee + Family | +$486 |
| Choice | |
| Employee Only | +$28 |
| Employee + Children | +$203 |
| Employee + Spouse | +$203 |
| Employee + Family | +$260 |
Answer provided by Maya Kumazawa, Director of Budget and Planning