Average annual family health insurance plan has soared to $24,000 - the cost of a small CAR - as inflation pushes up premiums
- In 2023 the cost of a family health insurance plan jumped the most since 2011
- The percentage of plans paid for by employees could rise, a survey reveals
- Roughly 153 million Americans rely on their employer for their health insurance
The cost of health insurance jumped this year by the biggest amount since 2011 - as inflation continues impact all corners of the US economy.
A 7 percent jump in the cost of an employer-sponsored family plan brought the average premium to nearly $24,000, according to an annual survey by healthcare research nonprofit KFF.
And employees have been paying a substantial proportion of that premium themselves - an average of around 27.5 percent this year.
That amounted to an average of $6,575 for their share in 2023, up around 8 percent on last year. That is almost twice the rate of inflation, according to data from the Bureau of Labor Statistics.
Those prices are likely to continue increasing, according to the KFF report. Nearly a quarter of companies said they will increase employees' contributions in the next two years.
![The cost of health insurance jumped this year by the biggest amount since 2011, according to an annual survey by healthcare research nonprofit KFF](https://i.dailymail.co.uk/1s/2023/10/18/21/76721713-12645953-The_cost_of_health_insurance_jumped_this_year_by_the_biggest_amo-a-2_1697662110427.jpg)
The cost of health insurance jumped this year by the biggest amount since 2011, according to an annual survey by healthcare research nonprofit KFF
![Employees paid for an average of around 27.5 percent of their employer-sponsored healthcare premiums in 2023, according to the survey](https://i.dailymail.co.uk/1s/2023/10/18/22/76722929-12645953-Employees_paid_for_an_average_of_around_27_5_percent_of_their_em-m-6_1697663856424.jpg)
Employees paid for an average of around 27.5 percent of their employer-sponsored healthcare premiums in 2023, according to the survey
In the case of single coverage health insurance plans, the cost was up by 6.6 percent, just over $500, to $8,435 in 2023, according to the survey. On single plans, employees also paid a smaller share of their premiums - just under 17 percent.
Roughly 153 million Americans receive health insurance coverage through their employer, according to the KFF report.
'We absolutely saw a big jump in employer premiums this year,' said Matthew Rae, associate director of KFF's Health Care Marketplace Program and a co-author of the report.
'To a family of four, you're basically spending pretty close to what a new car costs, just for the year, to keep everybody covered,' he said.
Rae attributed the rising cost of health insurance to inflation more broadly, noting that pressure caused by the increasing costs is being passed onto both the employers and employees.
'Both workers and employers end up footing the bill for these higher costs,' he said.
While inflation has decreased from highs of nearly 9 percent in June 2022, it is still above the Federal Reserve's 2 percent target.
The consumer price index rose 3.7 percent in the 12 months through September, according to Bureau of Labor Statistics data released earlier this month.
But on the plus side for workers, employers are not pushing up deductibles, which is the amount a covered person needs to pay initially out-of-pocket before the insurer makes a contribution.
The average annual deductible is roughly $1,735 among workers who have a deductible for single coverage.
![Despite small fluctuations, the proportion of family health insurance paid by the employee has also been fairly consistent for the last two decades. Rae suggested fluctuations could potentially be attributed to uncertainty in the survey](https://i.dailymail.co.uk/1s/2023/10/18/21/76721283-12645953-The_proportion_of_a_family_health_insurance_plan_paid_by_the_emp-a-3_1697662110427.jpg)
Despite small fluctuations, the proportion of family health insurance paid by the employee has also been fairly consistent for the last two decades. Rae suggested fluctuations could potentially be attributed to uncertainty in the survey
![Pictured is a Kaiser Permanente health care center. It is one of the largest healthcare companies in the US](https://i.dailymail.co.uk/1s/2023/10/18/21/76722863-12645953-Pictures_is_a_Kaiser_Permanente_health_care_center_It_is_one_of_-a-1_1697662110426.jpg)
Pictured is a Kaiser Permanente health care center. It is one of the largest healthcare companies in the US
According to KFF, the steady levels of deductibles are a reflection of employers wanting to keep out-of-pocket costs down for their employees.
'Employers spend all this money on health insurance because they want to recruit and retain the best staff they can.' Rae said. 'It's not the time, if you want to do that, to pinch pennies on the coverage you offer.'
Last month the Bureau of Labor Statistics announced that the US economy added 336,000 jobs in August, nearly twice analysts' expectations, triggering fears inflation may still not be under control.
Despite small fluctuations, the proportion of family health insurance paid by the employee has also been fairly consistent for the last two decades.
'Since 2008 premiums have just about doubled, but how that bill is spilt hasn't really shifted,' said Rae. He suggested those fluctuations could potentially be attributed to uncertainty in the survey.
But, he said: 'Lots of employers told us they were planning on raising workers premium contributions during the next two years.
Its report also found that on average covered workers in small firms contribute a much higher percentage of the premium for family coverage than those in large firms - 38 percent as opposed to 25 percent.