Pandemic effects: Insurance premiums up 4%
Health insurance premiums have risen 4% for workers in 2021.
Annual premiums for employer-sponsored family health coverage hit $22,221 this year, with workers paying an average of $5,969 toward the amount, according to new findings from the Kaiser Family Foundation published in Health Affairs. Employer-sponsored plans cover roughly 155 million people in the U.S. The average deductible for workers reached $1,669 for single coverage.
While premiums rose, workers’ wages also increased 5% on average and inflation creeped up to 1.9%. KFF’s data comes from a survey that was fielded from mid-January through July. The 2021 survey asked about changes employers and health plans made to address potential issues and uncertainties arising from the pandemic.
Results from the 2021 report highlight the ongoing trend of rising healthcare costs in the U.S. The average premium for family coverage has increased 22% over the last five years and 47% over the last ten years, KFF found.
While many aspects of life changed due to the COVID-19 pandemic, overall healthcare market characteristics “changed very little,” KFF found. The trends of 2021, including continued modest increases in annual premiums, are on pace with previous years. In addition, the share of people offered coverage at their work and the share of those covered by their jobs remained unchanged. The same is true for deductible averages and other cost-sharing levels.
Coverage loss during 2021 could potentially be explained by job loss, though the market was relatively stable for the large share of employees who retained their coverage.
One marked difference in 2021 was the rise in telemedicine coverage, as small and large employers increased this benefit and many others made the benefit more accessible.
“Almost half (47%) of employers with 50 or more employees offering health benefits agree that telemedicine will be very important in providing access in the future,” KFF wrote.
Additionally, more employers expanded mental health benefits, including adding health and wellness programs. Working remotely has also been a major adaptation for the workforce, and it remains to be seen how employers will continue their healthcare coverage with a widespread workforce and if other changes will endure.
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."