Prices for employer-sponsored medical health insurance surged from 2023 to 2024, rising sooner than inflation, in keeping with a brand new evaluation.
The report was performed by researchers from the State Well being Entry Information Help Heart (SHADAC) on the College of Minnesota. They examined tendencies in employer-sponsored insurance coverage each nationally and on the state stage by evaluating 2024 knowledge to 2023.
The researchers discovered that annual premiums for household protection provided by way of employers elevated by greater than $600 to $24,540 in 2024, a 3% improve from 2023. That is about the price of a brand new automobile, similar to a 2025 Toyota Corolla, in keeping with the report. Premiums for people rose $300 to $8,486, a 4% improve from 2023.
Employers in a number of states skilled premium hikes that exceeded the nationwide common, with Delaware seeing the steepest improve. Household premiums there jumped greater than 26% — over $5,800 in a single 12 months — whereas Alabama and Rhode Island additionally recorded notably giant year-over-year will increase.
Deductibles, in the meantime, rose a mean 8% from 2023 to 2024 for each particular person and household protection, the report discovered. The common annual deductible for household protection exceeded $4,000 for the primary time in 2024 attributable to a $330 improve.
Greater than half of personal sector employees with employer-sponsored insurance coverage are enrolled in high-deductible well being plans. These present decrease month-to-month premiums however usually result in larger out-of-pocket prices. In 22 states, enrollment in excessive deductible plans surpasses 60%.
Researchers discovered that worker contributions to employer-sponsored insurance coverage remained largely steady nationwide, with employees persevering with to pay about one-fifth of the associated fee for particular person protection and slightly below 30% for household protection from 2023 to 2024.
At present, greater than half of Individuals obtain protection by way of their employer, and healthcare prices have gotten a serious concern for each shoppers and employers.
“Employer-sponsored insurance coverage stays the spine of well being protection in the US, however it’s changing into more and more unaffordable for employers and their workers,” mentioned Elizabeth Lukanen, director at SHADAC, in an announcement. “As policymakers search for options to curb the rising healthcare affordability disaster, addressing the decades-long development of accelerating prices in employer-sponsored insurance coverage should be a part of the dialog.”
An govt on the Robert Wooden Johnson Basis, which supported the evaluation, echoed this.
“Employer-provided well being protection just isn’t immune from the healthcare affordability disaster that’s tightening its grip all through America,” mentioned Katherine Hempstead, senior coverage adviser on the Robert Wooden Johnson Basis. “The development of transferring to high-deductible plans to protect corporations and people from giant month-to-month premium will increase is comprehensible, but it surely means larger monetary threat down the highway within the occasion of a medical emergency. It’s a big gamble nobody ought to should take.”
Photograph: Ta Nu, Getty Photos
