Employers can expect another large hit to their budget next year from the soaring cost of providing employee health benefits, according to two new reports.

Based on a survey of 450 employers, Willis Towers Watson expects benefit costs in 2024 to rise by 6%, slightly higher than the 5.7% jump it predicted for 2023. Meanwhile, Mercer's 2023 National Survey of Employer-Sponsored Health Plans suggests a 5.4% increase next year—similar to the level it forecast for 2023, according to its survey of more than 1,700 employers across the nation.

These predictions are in stark contrast to the average annual increase of 3%-4% for employer health benefit costs that have been typical for most of the past decade, according to Mercer.