Insurance premiums rose 7% for families this year: KFF
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Average annual premiums for covering a family through workplace insurance rose 7% this year, to $25,572, with employees' share of the costs remaining stable but high, according to a new KFF health benefits survey.
Why it matters: Premiums have been rising at roughly the rate of inflation and the change in wages over the past five years, but future coverage costs will hinge on factors like whether health plans opt to cover pricey GLP-1 weight-loss drugs.
By the numbers: Employees pay an average of $6,296 in annual premiums for their family coverage in 2024, per KFF. That's similar to last year and up less than $300, or about 5%, compared to 2019.
- The average annual premium for single-person coverage is $8,951 this year.
- Workers' overall wages have increased 28% over the past five years, while inflation has increased 23%.
- In contrast, worker contributions to family coverage premiums increased 25% from 2014 to 2019, while overall premium costs rose 22% and earnings rose just 14%.
What they're saying: "Employers are shelling out the equivalent of buying an economy car for every worker every year to pay for family coverage," KFF President Drew Altman said in a news release.
- "In the tight labor market in recent years, they have not been able to continue offloading costs onto workers who are already struggling with health care bills."
- While deductible amounts have been stable for several years, they remain quite high, KFF said in a discussion of the results.
Zoom in: The vast majority of workers (87%) have a plan with an annual deductible, which is the amount enrollees pay out-of-pocket aside from their premium before insurance kicks in.
- The average annual deductible for single coverage is $1,787 this year, KFF found. That trends higher for employees at firms with less than 200 workers.
- Average family plan deductibles this year range from $1,548 to $4,991, depending on the plan type and structure.
- The Affordable Care Act required most plans to cover preventive care and other services without any cost-sharing.
Of note: Only 18% of firms with 200 or more workers offering health benefits cover GLP-1 agonists for weight loss.
- Nearly 60% of firms with 5,000 or more employees say covering GLP-1s for weight loss will have a major impact on their drug spending, compared to about 30% of smaller employers.
- Employers said in a separate survey this summer that demand for GLP-1s is driving up their health insurance costs for 2025.
- About 30% of firms with 200 or more workers said legally-provided abortions are covered in most or all circumstances. 45% of employers responding to the survey said they didn't know their firm's benefit.
