October 21, 2023
Survey Reveals Sharp Rise In Job-Based Health Insurance Premiums, With Family Coverage Nearing $24,000 Annually
Employees have seen a significant increase in their job-based health insurance premiums this year. According to a survey conducted by KFF, the average cost of family coverage is close to $24,000 annually, which is a 7% increase from last year.
Employees are paying an average $6,575 for their share of their healthcare premium, an 8% increase from last year.
Deductibles, which average $1,735 for single coverage, have remained steady since last year. However, working at a smaller company is more costly. Employees working for a firm with under 200 employees can pay $2,434 on average.
The healthcare research firm determined that the increase in insurance premium costs is in line with the increase in wages and inflation, but this doesn’t prevent companies and employees alike from feeling the effects of the increase. The study found that 58% of employers say that their workers have expressed some concern about the affordability of their healthcare coverage.
“Rising employer health care premiums have resumed their nasty ways, a reminder that while the nation has made great progress expanding coverage, people continue to struggle with medical bills, and overall, the nation has no strategy on health costs,” says KFF President and CEO Drew Altman.
Employers are willing to cover the bulk of these premium increases because adequate healthcare coverage is an asset for both recruiting and retaining employees.
Mental health care has been a growing concern amongst employees. Eighteen percent of large companies (at least 200 workers) have taken steps to increase access to mental health care.
“For several years now, the survey has shown that many large employers do not believe that their networks have enough mental health providers to provide timely access to care. Gary Claxton, KFF senior vice president and director of the HealthCare Marketplace Project.
This survey was conducted between January and July of 2023. It included 2,133 public and private firms, with at least three employees that responded to the full survey.