Employers expect another significant hike in healthcare costs as they look ahead to next year.

"Employers are anticipating another 7 percent increase in healthcare costs for 2024," said Julie Stich, vice president of content for the International Foundation of Employee Benefit Plans. "Plan sponsors have indicated that chronic health conditions have a considerable effect on their medical expenses. That ties to the data that disease management and wellness programs rank high in cost-management strategies."

The foundation's latest survey found that the expected increase is in line with this year's rise in costs. According to survey respondents, the top four contributors to higher costs are:

• Utilization because of chronic health conditions, up 22% (higher increase than last year)
• Catastrophic claims, up 19% (same as last year)
• Specialty or costly prescription drugs or cell and gene therapy, up 16% (higher than last year)
• Medical provider costs, up 14% (higher than last year)

One notable change from last year is increased utilization because of delayed preventative or elective care during the pandemic, which declined from 12 percent to 4 percent.