Oct 13, 2020
Annual family premiums for employer-sponsored health insurance rose 4% to average $21,342 this year, according to a recent KFF survey. Workers are contributing an average of $5,588 toward the cost of family coverage this year, with employers paying the rest.
Since 2010, average family premiums have increased by 55%, at least twice as fast as wages (27%) and inflation (19%).
Deductibles Remain Steady
Eighty-three percent of covered workers have a deductible in their plan, similar to last year and up from 70% a decade ago. The average single deductible is $1,644 for workers who have one, similar to last year’s $1,655 average but up sharply from the $917 average of a decade ago. These two trends result in a 111% increase in the burden of deductibles across all covered workers.
Networks Satisfaction is Mixed
Eighty-three percent of offering employers are satisfied with the choice of providers. That drops to 67% for satisfaction with mental health and substance abuse networks. Nineteen percent describe their mental health networks as somewhat or very narrow.
Offer Rates Hold Steady
Fifty-six percent of employers offer health benefits, which is largely unchanged over the past five years. Fifty-three percent of firms with fewer than 50 workers offer coverage compared to 99% of firms with at least 200 workers.
Cost Sharing Varies Widely
Virtually all covered workers are in plans that limit in-network cost-sharing for single coverage (out-of-pocket maximum). Those limits vary widely, with 11% of covered workers in plans with maximums of less than $2,000 and 18% of covered workers in plans with maximums of at least $6,000.
Effectiveness of Wellness Programs in Question
Eighty-one percent of large firms offer a wellness or health promotion program. Only 11% rate their program as very effective in reducing their health care costs.
