Insurance premiums––and affordability concerns––keep rising
Insurance premiums are rising at a much faster rate than earnings growth or inflation, according to new data from the annual Kaiser Family Foundation Employer Health Benefits Survey, outlined in Health Affairs.
The findings underscore that insurance costs are continuing to rise and becoming unaffordable for many, and health insurance reform could be a huge issue in the upcoming 2020 presidential election.
Family health insurance premiums rose 5% in 2019, topping $20,000 on average, while the annual average premium for single coverage rose 4% in 2019, reaching $7,188, the survey found.
The majority of Americans receive insurance coverage through their employer, and 57% of firms in the U.S. offered health benefits to at least some of their workers, the Health Affairs article, written by first author Gary Claxton, senior vice president and director of the Program on the Health Care Marketplace at the Henry J. Kaiser Family Foundation, and colleagues, noted.
Overall, workers contributed 18% on average for single premiums and 30% for family premiums.
The survey, which received answers from 2,0212 firms, asked benefit managers about the characteristics of their firm’s health plan and organization options. It has found a consistent rise in insurance premiums,
“Over the past five years the average premium for family coverage has risen 22%—more than inflation (8%) or increases in workers’ earnings (14%),” Claxton et al. wrote.
Many of the increases happened in years when there were no big changes to the marketplace for employer-sponsored healthcare, but premiums still grew. In addition, deductibles have risen 162% since 2009.
As premiums rise, concerns about affordability are growing, as well. According to a recent survey from the Kaiser Family Foundation and the Los Angeles Times, 40% of adults with employer-based coverage had difficulty affording health insurance or healthcare or had problems paying medical bills. And concerns about affordability are likely to stick around.
“There is little reason to think that employer plans are going to become more generous, particularly for people with lower wages—for whom affordability problems are the most acute,” Claxton and colleagues wrote.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."