A meteoric rise in worker health costs has slowed — but they’re already 'egregious,' advisor says
Costs for some key health insurance components have slowed for workers in recent years. While the deceleration is a positive trend, many workers likely still find current prices unaffordable, experts said.
«Yes, it's slowed,» said Carolyn McClanahan, a physician and certified financial planner, and founder of Life Planning Partners in Jacksonville, Florida. «But it's already egregious for the average person.»
Employer-sponsored health plans have many moving parts that can affect workers' wallets. For example, workers get premiums deducted from each paycheck. Visiting the doctor generally comes with cost-sharing, like co-payments, deductibles and out-of-pocket maximums.
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The rise in worker premiums has somewhat mitigated.
Workers pay $1,401 in total premiums in 2023, up 18% from 2018, according to KFF, a nonprofit health-care data provider. They increased by an equivalent amount from 2013 to 2018, but had swelled by 39% from 2008 to 2013.
The dynamic is more pronounced for deductibles and out-of-pocket maximums.
A deductible is the annual sum a consumer must pay out of pocket before a health insurer starts to pay for services.
Single workers have a $1,735 average deductible in 2023, according to KFF. (This cost is for employer-sponsored health plans and assumes consumers receive in-network care.)
The average deductible has grown by 10.3% in the past five years, up from $1,573 in 2018. However, that rate has slowed significantly relative to the recent past: Deductibles rose by 38.6%
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