New Study Reveals Alarming 7% Increase in Health Insurance Premiums

In 2023, the average annual premium for employer-sponsored family health insurance coverage increased by 7 percent, as revealed by a study published on Wednesday.

These findings originate from the annual Employer Health Benefits Survey conducted by health research organization KFF. The survey collected responses from private firms and nonfederal government employers with three or more employees. Out of the 24,891 firms sampled, 2,133 completed responses were received.

According to the survey, the average annual premium for employer-sponsored family health insurance rose from $22,463 in 2022 to $23,968 in 2023. Employees with family coverage contributed an average of 29 percent towards the total cost, while those with single coverage contributed 17 percent on average.

This year, the average employee contribution towards the cost of health insurance coverage was $6,575. Since 2018, both single and family coverage premiums have increased by 22 percent.

Interestingly, almost a quarter of employers surveyed mentioned their plans to increase workers’ contributions over the next two years. It has been observed that average worker contributions have generally risen over the 25 years this survey has been conducted by KFF.

KFF’s analysis also revealed that the cost of average family premiums was comparable for workers in both small and large firms, although single premiums were about 5 percent higher for employees in smaller firms. However, the survey highlighted that around 30 percent of covered workers in small firms were enrolled in plans where their employers paid the entire premium for single coverage.

KFF also noted that the 7 percent increase is similar to the year-over-year rise in workers’ wages and inflation, both of which fell between 5 percent and 6 percent. In contrast, between 2021 and 2022, the annual premiums for employer-sponsored family health coverage only experienced a 1 percent increase.

According to KFF’s data, among the 73.6 million workers covered by employers’ health benefits, 3.1 million were employed by the firms participating in this study. The survey was conducted from January to July of this year.

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