News Release |
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Average Family Premiums Rose 4% to $21,342 in 2020, Benchmark KFF
Employer Health Benefit Survey Finds Average
Deductible Stands at $1,644, Unchanged in Past Year but Up Significantly Over
Time San
Francisco –
Annual family premiums for employer-sponsored health insurance rose 4% to
average $21,342 this year, according to the 2020 benchmark KFF Employer Health Benefits Survey released
today. On average, workers this year are contributing $5,588 toward the cost
of family coverage, with employers paying the rest. The
survey was conducted from January to July as the COVID-19 pandemic and
economic crisis unfolded and may not capture its full impact on costs and
coverage. The annual change in premiums is similar to the year-to-year rise
in workers’ earnings (3.4%) and inflation (2.1%), though over time what
employers and workers pay toward premiums continues to rise more quickly than
wages and inflation. Since 2010, average family premiums have increased 55%,
at least twice as fast as wages (27%) and inflation (19%). This
year 83% of covered workers have a deductible in their plan, similar to last
year and up from 70% a decade ago. The average single deductible stands at
$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. “Conducted partly before
the pandemic, our survey shows the burden of health costs on workers remains
high, though not getting dramatically worse,” KFF President and CEO Drew
Altman said. “Things may look different moving forward as employers grapple
with the economic and health upheaval sparked by the pandemic.” About 157 million
Americans rely on employer-sponsored coverage, and the 22nd annual survey of
nearly 1,800 small and large employers provides a detailed picture of the
trends affecting it. Plan details such as premiums and deductibles largely
reflect decisions made by employers before they felt the full impact of the
COVID-19 pandemic and economic crisis. Next year’s survey will provide the
first full look at how the pandemic may have affected workers’ health
benefits. In
addition to the full report and summary of findings released today, the
journal Health Affairs is publishing an article online with
select findings that will also appear in its November issue. KFF is also
releasing an updated interactive graphic that charts the survey's premium
trends by firm size, industry, and other firm characteristics. The
survey finds a large majority (83%) of offering employers say they are
satisfied with the overall choice of providers available through their
insurance plans, though significantly fewer (67%) say the same about their
mental health and substance abuse networks.
“The
coronavirus pandemic has increased the need for access to mental and
behavioral health services, for which the provider networks are often more
narrow than for other services,” said Gary Claxton, a KFF senior vice
president and director of the Health Care Marketplace Project, the lead
author of the study and Health Affairs article. “Some plans
have been able to increase access by supporting telehealth, though it’s
unclear whether such options will become a permanent feature.” Other survey findings
include:
KFF
conducted the annual employer survey between January and July of 2020, with
about half of the interviews conducted before the full extent of the
coronavirus pandemic had been felt by employers. It included 1,765 randomly
selected, non-federal public and private firms with three or more employees
that responded to the full survey. An additional 1,817 firms responded to a
single question about offering coverage. For more information on the survey
methodology, see the Survey Design and Methods Section. ABOUT HEALTH AFFAIRS: Health Affairs is the leading peer-reviewed journal at the intersection of health, health care,
and policy. Published monthly by Project HOPE, the journal is available in
print and online. Late-breaking content is also found through healthaffairs.org, Health Affairs Today, and Health Affairs Sunday Update. Filling
the need for trusted information on national health issues, KFF
(Kaiser Family Foundation) is a nonprofit organization based in San
Francisco, California. |
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Thursday, October 8, 2020
Average Family Premiums Rose 4% to $21,342 in 2020, Benchmark KFF Employer Health Benefit Survey Finds
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