Employees have seen a significant increase in their job-based health insurance premiums in 2023. According to a survey conducted by healthcare research firm KFF, the average cost of family coverage is close to $24,000 annually, a 7% increase from 2022.
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 2022. Working at a smaller company is more costly, however: Individuals working for a firm with under 200 employees pay $2,434 on average, according to the survey.
KFF determined that while the increase in insurance premium costs is in line with an increase in wages and inflation, this doesn’t prevent companies and employees alike from feeling the effects. The study revealed that 58% of employers say 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,” said KFF President and CEO Drew Altman.
Employers are willing to cover the bulk of these premium increases because adequate healthcare coverage is an asset in both recruiting and retaining employees.
Mental health remains a growing concern among employees, and 18% of large companies (with 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,” said Gary Claxton, KFF senior vice president and director of the HealthCare Marketplace Project.
The KFF survey was conducted between January and July 2023. It included 2,133 public and private firms, with at least three employees responding to the full survey.
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