Family health insurance through work now costs $24,000 a year

Premiums for employer-sponsored health insurance have risen sharply over the past year, piling on further costs to businesses and workers already feeling the squeeze from high inflation.

KFF’s annual Employer Health Benefits Survey released Wednesday found coverage for a family plan now averages $23,968, with workers typically paying more than $6,500 toward that amount while employers pay the rest.

The cost for single plans rose, too, reaching an average of $8,435 annually.

The data shows the cost of both family and single plans jumped 7% this year, which KFF said was a “sharp departure” from last year’s survey findings that indicated there was virtually no increase in the price of premiums.

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The 7% surge in work-based health insurance costs means coverage rose higher year-over-year than workers’ wages (5.2%) and inflation (5.8%).

“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,” KFF President and CEO Drew Altman said.

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Nearly 153 million Americans receive their health insurance through an employer, who typically pay more than 70% of the cost of coverage for family plans, according to KFF. 

The health policy and polling organization said its survey showed workers paid on average $500 more this year toward their premiums than in 2022, and that future out-of-pocket increases could be coming given that 23% of employers said they plan to increase workers’ contributions in the next two years.

KFF’s annual survey polled more than 2,100 non-federal public and private firms. The organization reported the average cost for job-based family health care plans has risen 22% since 2018 and is up 47% since 2013.