Trends in Employer-Sponsored Health Insurance

What You Need to Know

Average annual premiums increased 6-7% in 2024 while workers' wages increased an average of 4.5% and inflation increased 3.2% according to KFF's 26th annual health benefits survey.

On average, employees pay 16% ($1,368) of premiums for single coverage, with employers paying the remaining 84%. Employees enrolled in a family plan bear a higher percentage of premium costs, paying an average of 25% ($6,296). In both cases, employees' premium responsibilities (%) are slightly lower than in 2023.

While premiums increased, deductibles remained relatively stable, as they have for the last several years. The average deductible today is not statistically different than it was 5 years ago.

Employer health plans cover 154 million people, or roughly 46% of the U.S. population.

What this Means for You

The KFF report shows that, in general, employers have not shifted more costs onto their workers. It also reveals that the cost of a family plan for employers is, as KFF's President Drew Altman put it, "the equivalent of buying an economy car for every worker [emphasis added] every year to pay for family coverage."

Based on these trends, we recommend keeping a close watch on how the most important health plans you contract with continue to modify their practices. In particular, if neither of these factors materially changes moving forward, then the most obvious way employers can control their costs is by offering plans with either tiered or narrow networks. Narrow networks, in particular, become a zero-sum game for providers: if you're in the network, you have access to patients (albeit at lower reimbursement rates); if you're out, you generally lose that access to all but the wealthiest patients.

To see the KFF report, click here.