New survey shows average annual family health coverage is up 9%

FRESNO, Calif. (KFSN) — Workers who get health insurance through their employers are facing higher costs this year, according to new survey data from KFF, an independent health policy organization.

KFF’s 28th annual Employer Health Benefits Survey found that workers pay an average of $7,471 annually for family health coverage. That marks a 9% increase, or $621 more than last year.

“If that trend continues, that could be a real change in the affordability equation for many, many workers,” said Matthew Rae, associate director of KFF’s Health Care Marketplace Program.

The survey also found that average total family premiums increased 5% to $28,303.

“We’re talking about roughly the cost of a new car to, well, just for people for one year and health insurance,” Rae said.

When asked why costs are increasing, Rae pointed to rising health care expenses and greater use of some medical services.

“Health care costs are going up. Doctors, hospitals and prescription drugs all cost more. That shows up in higher premiums this year. We’re seeing sort of higher utilization in some services, such as outpatient mental health, as well as GLP-1 coverage. All contribute to higher spending on employer premiums,” Rae said.

The burden of family premiums is especially significant for workers at small firms with fewer than 200 employees.

“Over a third of those covered workers at small firms have a deductible of $2,000 or more for single coverage. They’ve got dependents. You can end up spending a lot of money in health care at small firms,” Rae said.

As workers review their health insurance options during open enrollment, Rae said it is important to look beyond monthly premiums when comparing plans.

“The plan with the lowest premium may not be the best plan for you. You want to kind of consider if you’re going to use a lot of services. Look at the out-of-pocket maximum. That’s the most amount of money that you can spend out of pocket for in-network covered services. May want to look at the deductible,” Rae said.

Rae also recommended using doctors and health care facilities that are in network to help reduce costs. He added that many are predicting the possibility of significant premium increases next year.

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