Employers and workers are spending nearly $20,000 for family health insurance in 2018, with premiums increasing more quickly than workers’ wages. Companies pay an average of $14,100 annually, while workers contribute $5,550, which is up 65% from a decade ago. The average family premium has increased by 55% since 2008, twice as fast as workers’ wages.
Deductibles have also risen significantly, reaching an average of $1,350, up 212% since 2008. More workers are now subject to deductibles, with 85% in 2018 compared to 59% a decade ago. Employers have been raising deductibles to limit premium increases, but this has led to increased out-of-pocket costs for employees.
In response to rising healthcare costs, companies like Amazon, Berkshire Hathaway, and JPMorgan Chase have joined forces to provide better healthcare options for their employees and reduce costs. Other companies are also partnering directly with hospitals and providers to offer care to their workers. General Motors and Henry Ford Health System, for example, have set up contracts to provide services to GM workers and their families.
Some employers are opting for high-quality provider networks to lower costs, with 11% already implementing these networks and 34% considering them. Additionally, more companies are offering coverage for telemedicine visits, although employee utilization of this service remains low.
While employers are taking steps to address rising healthcare costs, employees are still facing financial burdens due to premiums, deductibles, and out-of-pocket expenses. As healthcare continues to be a significant expense for both companies and workers, finding cost-effective solutions and innovative approaches to care delivery will be crucial in the future.