Workplace health insurance cost up 4 percent

Health insurance costs for Americans who get their coverage through work continued a relentless march upward, with average family premiums rising 4 percent to $21,342 this year, a study shows.

The annual survey by KFF found workers on average are paying nearly $5,600 this year toward family coverage, up from about $4,000 in 2010 and $1,600 in 2000.

While health insurance costs rose a modest amount in 2020, as has been the trend in recent years, they soared 55 percent in the past decade — more than twice the pace of inflation and wages.

About 157 million Americans rely on employer-sponsored coverage — far more than any other type of coverage, including Medicare, Medicaid and individually purchased insurance on the Affordable Care Act exchanges.

More than half of employers provide insurance to at least some workers.

“Conducted partly before the pandemic, our survey shows the burden of health costs on workers remains high, though not getting dramatically worse,” Drew Altman, KFF’s CEO, said in a statement. “Things may look different moving forward as employers grapple with the economic and health upheaval sparked by the pandemic.”

The survey was conducted from January to July as the pandemic took hold and upended the nation’s economy. Many of the details of the employers’ plans the researchers examined were set before the virus hit.

Since 2012, the cost of family coverage has increased 3 percent to 5 percent annually. It’s been more than 15 years since these costs were rising at double-digit rates.

Employers help shield workers from much of the cost of their health insurance premiums, though employees often feel the impact via higher deductibles, copayments and lower wages.

On average, workers pay 17 percent of the premium for single coverage and 27 percent for family coverage, the survey found. Workers at smaller companies pay 35 percent of the premium for family coverage, compared with 24 percent for larger companies, the survey found.

The average annual deductible for single coverage now is $1,644, up 25 percent in the past five years and 79 percent in the past decade.

The study also noted that large employers have made it easier for workers to access care by adopting coverage for telemedicine in recent years.

Nearly nine companies in 10 that have 200 or more workers covered medical appointments via phone or computer this year, up from fewer than three in 10 in 2015.

During the pandemic, telemedicine usage has increased markedly as people sought care from the safety of their homes.