Costs
for
employer-sponsored
health
insurance
surged
from
2023
to
2024,
rising
faster
than
inflation,
according
to
a
new
analysis.
The
report
was
conducted
by
researchers
from
the
State
Health
Access
Data
Assistance
Center
(SHADAC)
at
the
University
of
Minnesota.
They
examined
trends
in
employer-sponsored
insurance
both
nationally
and
at
the
state
level
by
comparing
2024
data
to
2023.
The
researchers
found
that
annual
premiums
for
family
coverage
offered
through
employers
increased
by
more
than
$600
to
$24,540
in
2024,
a
3%
increase
from
2023.
This
is
about
the
cost
of
a
new
car,
such
as
a
2025
Toyota
Corolla,
according
to
the
report.
Premiums
for
individuals
rose
$300
to
$8,486,
a
4%
increase
from
2023.
Employers
in
several
states
experienced
premium
hikes
that
exceeded
the
national
average,
with
Delaware
seeing
the
steepest
increase.
Family
premiums
there
jumped
more
than
26%
—
over
$5,800
in
a
single
year
—
while
Alabama
and
Rhode
Island
also
recorded
notably
large
year-over-year
increases.
Deductibles,
meanwhile,
rose
an
average
8%
from
2023
to
2024
for
both
individual
and
family
coverage,
the
report
found.
The
average
annual
deductible
for
family
coverage
exceeded
$4,000
for
the
first
time
in
2024
due
to
a
$330
increase.
More
than
half
of
private
sector
workers
with
employer-sponsored
insurance
are
enrolled
in
high-deductible
health
plans.
These
provide
lower
monthly
premiums
but
often
lead
to
higher
out-of-pocket
costs.
In
22
states,
enrollment
in
high
deductible
plans
surpasses
60%.
Researchers
found
that
employee
contributions
to
employer-sponsored
insurance
remained
largely
stable
nationwide,
with
workers
continuing
to
pay
about
one-fifth
of
the
cost
for
individual
coverage
and
just
under
30%
for
family
coverage
from
2023
to
2024.
Currently,
more
than
half
of
Americans
receive
coverage
through
their
employer,
and
healthcare
costs
are
becoming
a
major
concern
for
both
consumers
and
employers.
“Employer-sponsored
insurance
remains
the
backbone
of
health
coverage
in
the
United
States,
but
it
is
becoming
increasingly
unaffordable
for
employers
and
their
employees,”
said
Elizabeth
Lukanen,
director
at
SHADAC,
in
a
statement.
“As
policymakers
look
for
solutions
to
curb
the
growing
healthcare
affordability
crisis,
addressing
the
decades-long
trend
of
increasing
costs
in
employer-sponsored
insurance
must
be
part
of
the
conversation.”
An
executive
at
the
Robert
Wood
Johnson
Foundation,
which
supported
the
analysis,
echoed
this.
“Employer-provided
health
coverage
is
not
immune
from
the
healthcare
affordability
crisis
that
is
tightening
its
grip
throughout
America,”
said
Katherine
Hempstead,
senior
policy
adviser
at
the
Robert
Wood
Johnson
Foundation.
“The
trend
of
moving
to
high-deductible
plans
to
shield
companies
and
individuals
from
large
monthly
premium
increases
is
understandable,
but
it
means
greater
financial
risk
down
the
road
in
the
event
of
a
medical
emergency.
It’s
a
gamble
no
one
should
have
to
take.”
Photo:
Ta
Nu,
Getty
Images