Last Updated on October 20, 2023 by SPN Editor
The annual cost of family health insurance coverage provided through workplaces has reached a staggering average of nearly $24,000 this year. Moreover, the annual premium for single-coverage health insurance has taken a substantial leap, reaching an average of $8,435 in 2023. The findings of KFF’s Employer Health Benefits Survey, a widely respected source for healthcare insights indicate a notable 7% surge in these insurance costs compared to 2022.
This substantial rise in premiums is affecting the pockets of individual workers who are grappling with the mounting costs. On average, they are now shouldering a burden of just over $1,400 towards these premiums. This amounts to an increase of roughly $75 in comparison to the previous year’s figures.
The financial impact is significant for employees who rely on this coverage. On average, they are now contributing around $6,575 towards the premium costs. This represents an increase of nearly $500, or approximately 8% when compared to the preceding year’s figures. The growing disparity between the costs borne by employees and their respective companies is an issue demanding attention.
The substantial rise in family health insurance costs is a cause for concern on multiple fronts. Families already grappling with the increasing expenses of daily life now face an additional financial burden due to these soaring premiums.
The survey’s findings serve as a stark reminder of the challenges individuals and families encounter while trying to secure essential healthcare coverage. As these costs continue to surge, many are left wondering about the long-term implications and the future of employer-provided family health insurance.
The persistent uptick in health insurance premiums presents a complex issue, and it is having a tangible impact on both employers and their workers. This surge in single coverage premiums raises important questions about the accessibility and affordability of healthcare for individuals. As costs continue to escalate, there is growing concern about the financial implications and sustainability of health insurance, emphasizing the need for comprehensive healthcare reform.
In the wake of the Supreme Court’s landmark 2022 decision that effectively revoked the federal constitutional right to an abortion, large employers with a presence in multiple states are grappling with the intricate challenge of offering abortion coverage. The evolving landscape is fraught with uncertainty due to the adoption of varying state laws that either prohibit or restrict abortion access.
A recent study conducted by the Kaiser Family Foundation (KFF) revealed a spectrum of abortion coverage policies among large employers. Notably, 10% of large firms employing at least 200 individuals indicated that their most extensive family health insurance plan does not encompass legal abortions. An additional 18% disclosed that they provide abortion coverage solely under limited circumstances, such as in cases of rape, incest, or when health or life is in peril.
On the other end of the spectrum, almost a third of large firms confirmed that they offer abortion coverage in most or all circumstances. Remarkably, 40% admitted to being uncertain about their existing coverage policies, possibly due to ongoing adjustments or a lack of clarity regarding the specifics.
Several companies have taken proactive measures following the Supreme Court’s decision. They have pledged to provide financial support to employees who may need to travel across state lines for abortion services. While 7% of large employers have already initiated or have plans to implement such reimbursement, this percentage rises to 19% for companies with a workforce of over 5,000 employees.
Every year, the Kaiser Family Foundation conducts a comprehensive survey aimed at monitoring the trends in employer health insurance, an area of paramount importance that directly affects the lives of over 150 million Americans.
This extensive survey encompassed data collected from a wide spectrum of companies, totaling more than 2,133 in number, ranging from large corporations to smaller enterprises.
Among the survey’s key findings, it was revealed that the majority of covered workers actively contribute to the cost of their health insurance premiums. On average, these covered workers contribute approximately 17% of the premium for single coverage and 29% for family health insurance coverage. These figures closely mirror the percentages reported in the previous year, underlining the consistency of these contribution patterns.
In contrast, smaller companies exhibit a distinct pattern, with their workers contributing an average of 38% of the cost of family coverage. The substantial contribution from employees in these smaller enterprises is a notable characteristic.
Additionally, the survey shed light on the average annual deductibles for single workers who are enrolled in plans with deductibles. These deductibles, on average, amount to just over $1,700. It’s a key metric that highlights the financial responsibilities borne by covered workers in their healthcare plans.
In terms of plan types, Preferred Provider Organizations (PPOs) are the most common choice, with 47% of covered workers opting for this type of plan. This is in contrast to the 29% enrolled in high-deductible plans with a savings option, 13% in Health Maintenance Organizations (HMOs), and 1% in conventional indemnity plans. The survey revealed that the distribution of plan enrollment has remained relatively stable in recent years among covered workers.
Furthermore, the survey explored the availability of health benefits among different-sized businesses. Notably, the data indicated that while the vast majority of companies with 200 or more employees offer health benefits to at least some of their workers, only slightly over half (53%) of small businesses extend health benefits.
It’s important to acknowledge that not everyone within businesses offering health benefits is eligible to partake. Various factors like waiting periods, part-time or temporary work status, or individual choices may affect eligibility and enrollment.
The report noted that, on average, 79% of those at firms offering coverage are eligible, and of these eligible individuals, three-fourths choose to enroll. Ultimately, this translates to 59% of workers in companies offering health benefits being actively enrolled in coverage.