The Kaiser Family Foundation recently published the results from their annual survey of employers (1), which indicate that health benefit costs continue to increase faster than the rate of inflation. On the slightly positive side, the increase rate of health care costs has slowed in the last 5 years.
Employee share of the family premiums has remained in the 25% to 30% range over the last 20 years, which means that the employees’ share of the premiums has increased at a similar rate as the employer’s share. However, average employee deductibles have increased significantly in the last 15 years, placing a bigger burden on employees. Again, the deductible increase rate has slowed in the last 5 years.
Here is more information from the survey:
- The cost of employer-sponsored family health coverage reached $21,342 this year, up 4% from last year
- The average employee share of the premium is $5,588
- The average annual employee deductible is $1,644 for single coverage
- 99% of large firms and 53% of small firms (under 50 employees) offer health benefits to employees
- Family premiums have increased 232% since the year 2000
- Although the employee share of the health premium (as a percentage) has not changed significantly in the past 15 years, (currently employees pay 26% of family premium), the average employee deductibles have risen significantly (180%)
- 31% of workers are currently covered under high deductible plans
(1) https://www.kff.org/slideshow/2020-employer-health-benefits-chart-pack/