VIRGINIA BEACH, Va. — As you shop for the holidays, you may also be shopping for health insurance.
With healthcare costs rising, you may want to take extra time to make your selections this year as there are changes to be aware of.
According to Mercer, a global company helping clients optimize their benefits, about half of employers are making cost-cutting changes to their plans for 2025.
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So, what does that mean for the employee? Well, it can mean higher deductibles and out-of-pocket costs when they get medical help.
“One of the big things driving this cost increase is just the impact of inflation over the last couple of years. Healthcare is just one of those things where so many of the prices are set in advance that it takes a long time for the effects of inflation to work its way into the health insurance premiums we pay,” says Matthew Rae, associate director of the program on the Health Care Marketplace with KFF.
To offset their costs, some companies offer incentives for employees to get healthcare coverage somewhere else, possibly independently or on their spouse's.
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If you have a 401(k), contribution limits are higher for next year. Elective deferrals, which is when a portion of your salary is withheld and put into a retirement plan, will jump to $23,500, which is up from $23,000 in 2024.
Now, let's talk about catch up contributions. These are contributions that go beyond the standard maximum limits and generally apply for employees who are 50 and participate in a savings plan.
Their contribution limit will not change for 2025.
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There will, however, be a change for people 60 to 63. Under the SECURE 2.0 act, a higher catch-up contribution applies for these employees making their limit $11,250 instead of $7,500.
Make sure you are dealing with your company directly and do not miss your company’s deadline.
In most cases once it closes you have missed your opportunity for next year.
