Average family premium up 22% since 2018
Employers have had to shell out more cash to provide health insurance for workers this year, according to a recent report.
Overall, employer-provided health insurance premiums cost $8,435 for single coverage and $23,968 for family, reports KFF, a source for health policy research.
These average premiums each increased 7% in 2023. Overall, the average family premium has increased 22% since 2018 and 47% since 2013.
Goodroot, a community of companies in the healthcare system, previously predicted an increase of 6.5% for health insurance premiums this year.
Company size and health insurance
When it comes to company size, small employers appear to be spending more money to provide health coverage for their workers compared with large corporations, reports KFF.
The average annual premium for single coverage for covered workers ($8,722) in small firms is bigger than that in large firms ($8,321). Meanwhile, large firms are paring a little bit more than small firm for family coverage ($24,104 compared with $23,621).
The average annual premiums for covered workers in High-Deductible Health Plans with Savings Option (HDHP/SOs) are lower than the average premiums for coverage overall for both single coverage ($7,753 compared with $8,435) and family coverage ($22,344 compared with $23,968).
Meanwhile, the average premiums for covered workers in Preferred Provider Organizations (PPOs) are higher than the overall average premiums for both single coverage ($8,906 compared with $8,435) and family coverage ($25,228 compared with $23,968).
Family premium for covered workers at firms with a relatively large share of lower-wage workers (firms where at least 35% of the workers earn $31,000 annually or less) is lower than the average premium for covered workers at firms with smaller shares of lower-wage workers for family coverage ($21,902 compared with. $24,151).
Companies will have to spend more for workers’ health coverage in 2024, according to separate reports. Aon predicts an increase of 8.5% to more than $15,000 per employee, while the International Foundation of Employee Benefit Plans (IFEBP) predicts a 7% increase.