COMP NEWS – The average annual premium for employer-sponsored health coverage rose about 7% in 202, tracking with unusually high inflation and wage growth.

• The average annual premium for both employer-sponsored single and family health insurance coverage rose 7% in 2023, faster than last year but consistent with inflation and wage growth, according to a survey conducted by KFF and published in Health Affairs. 
• The average premium was $8,435 for single coverage and $23,968 for family coverage this year. On average, workers contributed 17% of the premium for single coverage and 29% of the premium for family coverage.
• Many employers surveyed raised concerns about their workers’ views of health plan performance. Fifty-eight percent said their employees had a high or moderate level of concern about the affordability of cost sharing. About half said their workers had a high or moderate level of concern about their ability to schedule timely appointments or the complexity of prior authorization requirements. 

Nearly 90% of surveyed workers were enrolled in a plan with a general annual deductible.

People with employer-sponsored coverage generally have to pay for some portion of their care out of pocket. Ninety percent of workers were enrolled in a plan with a general annual deductible for single coverage this year, according to the survey. Nearly two-thirds of them had a deductible of $1,000 or more, while 31% were enrolled in a plan with a deductible of $2,000 or more.

Eighty-three percent of employees faced some type of cost sharing for inpatient hospital services, while 68% had a copayment and 19% had a coinsurance payment when visiting a primary care doctor this year.

Despite the increased premiums, employers report some challenges with their provider networks.

Though most said their largest plan had enough primary care providers to offer timely access to care for their workers, firms weren’t as satisfied with access to mental healthcare or substance use services. Only 68% of small companies, with three to 199 workers, and 59% of large firms, with 200 or more employees, felt there was a sufficient number of mental healthcare providers.

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