The average cost of employer health coverage rose in 2018 to almost $20,000 for a family plan and to $7,000 for single coverage, according to the Kaiser Family Foundation’s annual review of those plans. In addition, over the past 10 years, employees have ended up covering their own health care bills with more out of pocket cost and deductibles. Those costs are rising faster than inflation and faster than wages.
- The average family premium has increased by 55% since 2008 and 20% since 2013
- For single coverage employees are paying an average of about $1,200 per year in premiums. That’s 65% more than what they paid in 2008
- The bigger story is deductibles which are growing in every way. The average deductible is up — 212% since 2008, and the number of employees with above-average deductibles is also up
- The increases in premiums and deductibles both outstrip increases in wages
There’s evidence that employers have just about maxed out their ability to shift more costs onto employees — meaning that once price increases start to pick up steam again, businesses and workers will both feel the pain quickly.