Workplace family health insurance premiums increase to nearly $24,000 this year | CNN Business

New York

Workers and their employers are paying more for work-based health insurance this year.

According to KFFs, the cost of annual family health insurance at work has increased to an average of nearly $24,000 this year. Employer Health Benefits Survey, released Wednesday. That’s a 7% increase over last year.

The annual survey found that employees are paying an average of $6,575 for their share of premiums, an increase of nearly $500, or nearly 8%, from last year. Their companies are footing the rest of the bill.

We had huge premium increases this year. Matthew Rae, co-author of the survey, said there is no other way to cut it. There are many affordability challenges with employer coverage.

For single insurance, the average annual premium increased to $8,435, also up 7% compared to last year. Workers collected just over $1,400 in bills, about $75 more than last year.

According to KFF, although large, premium increases are roughly in line with wage increases and inflation from 2022, as well as over the past five years. This is different from the early 2000s, when premiums jumped by double digits, but inflation and wage growth were relatively muted.

The tight job market has caused companies to avoid reducing health insurance coverage because it can be a recruitment and retention tool.

KFF said deductibles remained essentially unchanged this year, which may reflect employer concerns about how much workers pay when they need medical care. The average annual deductible is about $1,735 for workers with a single insurance deductible.

Employers want to continue offering good benefits to retain good people, Rae said.

However, workers should prepare for premiums to receive a larger share of their paychecks in the coming years. KFF found that nearly a quarter of companies said they would increase insurance premiums for employees in the next two years.

Workers at smaller companies often pay more for insurance than their colleagues at companies with at least 200 workers.

KDC Mailing & Bindery has faced an overall premium increase of about 13% this year, said Steve Van Loon, chief executive officer of the Tempe, Arizona, company, which has 42 workers.

The company, which only started offering health benefits in 2019 to be more competitive, raised premiums for workers by 3% but had to increase prices by up to 5% to help them cover rising costs . KDC takes care of the rest.

Next year, Van Loon said, the company may not be able to be as generous with its employees.

Our profit margins do not allow us to absorb these costs,” he said. We will go out of business.

Large employers with workers in multiple states may face challenges providing abortion coverage following the 2022 Supreme Court decision ending the federal constitutional right to abortion. state. Many states have passed laws banning or restricting access to abortion services.

KFF found that 1 in 10 large companies with at least 200 employees said their largest plans did not include legal abortion. Another 18% said they only covered abortion under limited circumstances, such as rape, incest or danger to health or life.

Nearly a third of large companies said they cover abortion in most or all cases, while 40% said they were unsure about their coverage policy, possibly because it varies. constantly changing or they don’t know the details.

After the Supreme Court ruling, some companies said they would provide financial assistance to employees who had to travel to other states for abortions. About 7% of large employers – and 19% of companies with at least 5,000 workers – offer or plan to offer such reimbursement.

KFF has not asked these questions about abortion in previous surveys.

#Workplace #family #health #insurance #premiums #increase #year #CNN #Business
Image Source :

Leave a Comment