If you’ve noticed a growing portion of your earnings being consumed by medical premiums and out-of-pocket costs, you’re in good company, according to a freshly published survey.
In 2018, premiums rose faster than pay raises and inflation, the Kaiser Family Foundation’s Employer Health Benefits Survey discovered.
The 20th annual report examined spending patterns for the roughly 152 million Americans who receive employer-sponsored health coverage — nearly half the nation.
Combined, employers and employees now shell out $19,616 per year for family coverage, while single coverage runs $6,896 annually, the foundation reported.
Between 2006 and 2012, premiums climbed 37%, whereas wages only rose 18%.
Who’s Hurt Most by Escalating Health Care Expenses?
“Rising health care costs certainly remain a strain for employers, but they’re an even bigger issue for workers because their share of costs has been climbing much faster than their pay in recent years,” said Drew Altman, president and CEO of the Kaiser Family Foundation.
Average family premiums went up 5% over the last year, while single coverage increased 3%. At the same time, wages exceeded inflation by just 0.1%, the report noted.
Overall, employees at smaller businesses bear a greater portion of premiums and deductibles than those at larger companies, Altman noted. Average deductibles were $2,132 at small firms versus $1,355 at large employers (200 or more workers).
The amount workers pay toward deductibles surged 212% during the past decade — about eight times the pace of wage growth, he added.
There is a silver lining for employees at small firms: 27% of workers there have their entire premium paid by the employer, compared with 6% of employees at large organizations, according to the survey.
How Much Are We Spending on Health Care Each Year?
The average worker contribution toward premiums is $1,186 for an individual and $5,547 for family coverage. While those figures are roughly unchanged from last year, the average family contribution has climbed 21% since 2013 and 65% since 2008, Kaiser reported.
Most employees also pay copayments for physician visits. The typical copay is $25 for primary care and $40 for specialists, Kaiser calculated. Many workers additionally pay coinsurance averaging 18% of the covered portion of each visit, whether to a primary-care provider or a specialist. (That number was similar to 2017.)
Kaiser officials recommend that employees examine their employers’ benefits information closely to identify the most economical choices, even though options may be limited.
“When possible, you should comparison-shop,” Altman advised.
Olivia Monroe is an editor at Savinly. She covers health and wellness topics.
