How much Californian families spend on health care
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Health insurance costs ate up 11% of median family income in California in 2024, according to a new analysis.
Why it matters: The findings show how tough it can be to afford health care, even with insurance, for many of the estimated 167 million Americans who get coverage through an employer.
- The state-by-state breakdown of federal data by the Commonwealth Fund looked at how much people spent on premiums — their contribution to the cost of their insurance — and on deductibles, their out-of-pocket costs before insurance starts to pay for medical services.
By the numbers: While California employers still pay about 60% of the cost of premiums for family coverage, workers on average paid more than $9,100 annually, the analysis found.
- Nationally, employers pay about 70% of costs, with workers paying about $7,200 annually.
- California is one of 19 states where health insurance costs make up 10% or more of the median family income.
What we're watching: Health benefit costs are projected to increase in the high single digits this year, with many employers planning to limit premium increases by raising out-of-pocket costs for their workers.
- That's in part due to hospital consolidation, higher prices for medical services and supplies, GLP-1 drugs and more demand for behavioral health care, researchers said.