The Kaiser Family Foundation’s (KFF’s) 2023 Employer Health Benefits Survey revealed that workers and employers alike are paying more for job-based health insurance this year.
In 2023, the average premiums for employer-sponsored health insurance were $8,435 for single coverage and $23,968 for family coverage. The average single and family premiums increased by 7% over the last year, which was faster than the previous year (2% and 1%, respectively). Premiums for 2023 were expected to increase more in recent years since many 2022 premiums were locked in months before inflation became a significant concern.
Additionally, the Kaiser report notes an increase of 5.2% in workers’ wages and inflation of 5.8%. The average premium for family coverage has risen 22% over the last five years, compared with a 27% increase in workers’ wages and 21% inflation.
“We have a huge premium increase this year. There’s just no other way to cut it. There are lots of affordability challenges for employer coverage.”
– Matthew Rae, survey coauthor
2023 KFF Findings
The KFF annually conducts a survey to examine employer-sponsored health benefits trends. Consider the additional key findings from the 2023 survey:
- Worker contributions—The average worker contribution toward the premium was 17% for single coverage and 29% for family coverage in 2023, similar to 2022 percentages. In terms of dollar amounts, workers contributed $1,401 and $6,575 toward their premiums for single coverage and family coverage in 2023, respectively.
- Plan enrollment—Enrollment figures were reasonably similar to last year’s. Here were the most common plan types in 2023:
- PPOs: 47% of workers covered
- HDHP/SOs: 29%
- Health maintenance organizations (HMOs): 13%
- Point-of-service (POS) plans: 10%
- Conventional (indemnity) plans: 1%
- Self-funding—Similar to last year, 65% of workers are enrolled in self-funded plans.
- Employee cost sharing—The average deductible for single coverage was $1,735 in 2023, similar to 2022. The average annual deductible has increased 10% over the past five years and 53% over the past decade.
Employer Takeaway
As expected, the average annual premiums for both single and family coverage significantly increased in 2023 as the economy impacts health benefits. Looking ahead, inflation and wages are projected to moderate over the next two years.
Employers should begin identifying tools and resources to offset higher premiums and offer robust mental health support.
Employee Health and Benefits
