Health insurance costs increase due to inflation, averaging $24K for family plans.
OAN’s Abril Elfi
11:16 AM – Wednesday, October 18, 2023
The average cost of job-based health insurance has risen 7% since last year.
According to a KFF’s Employer Health Benefit Survey released on Wednesday, the annual cost for family health insurance has gone up 7% and now sits at an average of $6,575.
Premiums for single coverage also rose to nearly $8,500, increasing 7% and employees’ share of premium is up 8%.
Matthew Rae, who co-authored the survey, stated that there were many affordability challenges for employee coverage.
“We have a huge premium increase this year. There’s just no other way to cut it,” Rae said. “There are lots of affordability challenges for employer coverage.”
Though significant, the increase in premiums is broadly in line with wage and inflation increases since 2022, as well as over the previous five years, according to KFF.
Since health insurance may be used as a recruiting and retention strategy, firms have avoided watering down their coverage due to the tight employment market.
According to KFF, deductibles remained practically flat this year, which may reflect companies’ concerns about how much workers must pay when they require medical care.
Workers with deductibles for single coverage had an annual deductible of about $1,735 on average.
KFF President and CEO Drew Altman said in a press release that people continue to struggle to pay medical bills and the nation has no strategy on health costs.
“Rising employer healthcare 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,” Altman said.
Reportedly, employer-sponsored healthcare coverage is a necessity for almost 153 million people who currently depend on it.
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What percentage of firms offer health coverage to their workers?
Rategy for achieving lower health costs,” Altman said.
The survey also found that 73% of firms with 200 or more employees offer coverage to their workers, while only 63% of smaller firms — those with fewer than 200 employees — provide coverage.
The coverage offer rate for all firm sizes remained stable this year, with 56% of firms offering coverage to their employees. However, the percentage of employees covered by their employer’s insurance declined slightly from 62% in 2022 to 61% in 2023.
According to the survey, preferred provider organization (PPO) plans are the most common type of plan offered by employers, with 46% of workers enrolled in a PPO. High-deductible health plans with a health savings account (HSA) were offered by 25% of firms and are the second most common type of plan.
The survey also found that the average deductible for single coverage in HDHPs with an HSA was $2,574.
Overall, the survey highlights the ongoing challenges of rising healthcare costs for both employers and employees. With premiums and deductibles continuing to increase, individuals are increasingly burdened with high out-of-pocket expenses. As the nation grapples with how to address these issues, it is evident that affordable and accessible healthcare remains a pressing concern.
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