Section 1: Cost of Health Insurance - 10240 | KFF (2024)


Published:

  • Abstract
  • Summary of Findings
  • Survey Design and Methods
  • Report

Average annual health insurance premiums in 2023 are $8,435 for single coverage and $23,968 for family coverage. These average premiums each increased 7% in 2023. The average family premium has increased 22% since 2018 and 47% since 2013.

As part of this report, KFF publishes an online tool which allows users to look at changes in premiums and worker contributions for covered workers at different types of firms over time: https://www.kff.org/interactive/premiums-and-worker-contributions/

PREMIUMS FOR SINGLE AND FAMILY COVERAGE
  • The average premium for single coverage in 2023 is $8,435 per year. The average premium for family coverage is $23,968 per year [Figure 1.1].
  • The average annual premium for single coverage for covered workers at small firms ($8,722) is higher than the average premium for covered workers at large firms ($8,321). The average annual premium for family coverage for covered workers at small firms ($23,621) is similar to the average premium for covered workers at large firms ($24,104) [Figure 1.3].
  • The average annual premiums for covered workers in HDHP/SOs are lower than the average premiums for coverage overall for both single coverage ($7,753 vs.$8,435) and family coverage ($22,344 vs.$23,968). The average premiums for covered workers in PPOs are higher than the overall average premiums for both single coverage ($8,906 vs.$8,435) and family coverage ($25,228 vs.$23,968) [Figure 1.1].
  • The average premium for covered workers with single coverage is relatively higher in the Northeast and relatively lower in the South. The average premium for covered workers with family coverage is relatively higher in the Northeast and relatively lower in the West [Figure 1.4].
  • The average family premium for covered workers at firms with a relatively large share of lower-wage workers (firms where at least 35% of the workers earn $31,000 annually or less) is lower than the average premium for covered workers at firms with smaller shares of lower-wage workers for family coverage ($21,902 vs.$24,151) [Figure 1.7].
  • The average premiums for covered workers at firms with a relatively large share of older workers (firms where at least 35% of the workers are age 50 or older) are higher than the average premium for covered workers at firms with smaller shares of older workers for single coverage ($8,790 vs.$8,112) and for family coverage ($24,700 vs.$23,304) [Figure 1.6] and [Figure 1.7].
  • The average premium for single coverage is relatively low for covered workers at private for-profit firms and relatively high for covered workers at private not-for profit firms. The average premium for family coverage is higher for covered workers at private not-for-profit firms than average annual premiums for covered workers at other types of firms [Figure 1.6] and [Figure 1.7].

Figure 1.1: Average Annual Premiums for Covered Workers, Single and Family Coverage, by Plan Type, 2023

Figure 1.2: Average Annual Premiums for Covered Workers, Single and Family Coverage, by Firm Size, 2023

Figure 1.3: Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Firm Size, 2023

Figure 1.4: Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2023

Figure 1.5: Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Industry, 2023

Figure 1.6: Average Annual Premiums for Covered Workers With Single Coverage, by Firm Characteristics, 2023

Figure 1.7: Average Annual Premiums for Covered Workers With Family Coverage, by Firm Characteristics, 2023

Figure 1.8: Average Annual Premiums for Covered Workers, by Firm Characteristics and Firm Size, 2023

PREMIUM DISTRIBUTION
  • There is considerable variation in premiums for both single and family coverage.
    • Eighteen percent of covered workers are employed at a firm where the single coverage premium is at least 20% higher than the average single premium, while 20% of covered workers are at firms with a single premium less than 80% of the average single premium [Figure 1.9].
    • For family coverage, 18% of covered workers are employed at a firm with a family premium at least 20% higher than the average family premium, while 22% of covered workers are at firms with a family premium less than 80% of the average family premium [Figure 1.9].
  • Nineteen percent of covered workers are at a firm with an average annual premium of at least $10,000 for single coverage [Figure 1.10]. Seventeen percent of covered workers are at a firm with an average annual premium of at least $29,000 for family coverage [Figure 1.11].

Figure 1.9: Distribution of Annual Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2023

Figure 1.10: Distribution of Annual Premiums for Covered Workers With Single Coverage, 2023

Figure 1.11: Distribution of Annual Premiums for Covered Workers With Family Coverage, 2023

PREMIUM CHANGES OVER TIME
  • The average premiums for covered workers with single and family coverage are each 7% higher than the average premiums from last year [Figure 1.12].
    • The average premium for single coverage has grown 22% since 2018, the same as the growth in the average premium for family coverage over the same period [Figure 1.12].
    • The $23,968 average family premium in 2023 is 22% higher than the average family premium in 2018 and 47% higher than the average family premium in 2013. The 22% family premium growth in the past five years is similar to the 20% growth between 2013 and 2018 [Figure 1.15].
    • The average family premiums for covered workers at small firms and at large firms have grown at similar rates since 2018 (26% at small firms and 21% at large firms). For small firms, the average family premium rose from $18,739 in 2018 to $23,621 in 2023. For large firms, the average family premium rose from $19,972 in 2018 to $24,104 in 2023 [Figure 1.13].
    • The average family premiums have grown at similar rates since 2013 for covered workers at small firms and at large firms (52% at small firms and 44% at large firms). At small firms, the average family premium rose from $15,581 in 2013 to $23,621 in 2023. In large firms, the average family premium rose from $16,715 in 2013 to $24,104 in 2023 [Figure 1.13].
  • Over the past five years, the average family premium for covered workers at large firms that are fully insured has grown at a similar rate to the average family premium for covered workers in fully or partially self-funded firms (19% for fully insured plans and 21% for self-funded firms) [Figure 1.14].
  • The average family premium grew 7% in 2023, similar to the inflation rate (5.8%). Over the last 5 years, family premiums grew 22%, also similar to the rate of inflation during this period (21%). Over the last ten years, the growth in the average premium for family coverage far outpaced inflation (47% vs.30%) [Figure 1.15].
  • The average family premium grew 7% in 2023, compared to the average wage growth rate of 5.2%. Over the last 5 years, family premiums grew 22%, compared to 27% wage growth. Over the last ten years, the average family premium and average wages grew at roughly comparable rates (47% vs.42%) [Figure 1.15].

Figure 1.12: Average Annual Premiums for Single and Family Coverage, 1999-2023

Figure 1.13: Average Annual Premiums for Covered Workers With Family Coverage, by Firm Size, 1999-2023

Figure 1.14: Among Workers in Large Firms, Average Annual Premiums for Family Coverage, by Funding Arrangement, 1999-2023

Figure 1.15: Cumulative Premium Increases, Inflation, and Earnings for Covered Workers With Family Coverage, 2003-2023

Survey Design and MethodsSection 2: Health Benefits Offer Rates

Topics

  • Health Costs
  • Private Insurance
  • Mental Health

Tags

  • Employer Health
  • Premiums
  • Cost Sharing
  • Telehealth
  • Prescription Drugs
  • Wellness Programs
  • Coverage
  • High Deductible Plans
  • Retiree Coverage
  • Employers

Sections

  • Section 1: Cost of Health Insurance
  • Section 2: Health Benefits Offer Rates
  • Section 3: Employee Coverage, Eligibility, and Participation
  • Section 4: Types of Plans Offered
  • Section 5: Market Shares of Health Plans
  • Section 6: Worker and Employer Contributions for Premiums
  • Section 7: Employee Cost Sharing
  • Section 8: High-Deductible Health Plans with Savings Option
  • Section 9: Prescription Drug Benefits
  • Section 10: Plan Funding
  • Section 11: Retiree Health Benefits
  • Section 12: Health Screening and Health Promotion and Wellness Programs and Disease Management
  • Section 13: Employer Practices, Telehealth, Provider Networks, Coverage Limits and Coverage for Abortion

Also of Interest

  • Has Marriage Equality for LGBTQ People Impacted Access to Domestic Partner Health Benefits?
  • Employers Use of Center of Excellence Programs as a Pathway for Behavioral Health Services
  • Employer Health Benefits Annual Survey Archives
  • KFF Survey of Consumer Experiences with Health Insurance
Section 1: Cost of Health Insurance - 10240 | KFF (2024)

FAQs

How much is health insurance a month for a single person in US? ›

The average national monthly health insurance cost for one person on an Affordable Care Act (ACA) plan without premium tax credits in 2024 is $477.

How much do most employees pay for health insurance? ›

Most people know these plans as traditional group health plans or “fully-insured plans.” According to KFF's health benefits report, in 2023, the average cost of employee health insurance premiums for family coverage was $23,968. The average premium for a self-only plan was $8,435 annually1.

How much does the average American pay for health insurance? ›

Average annual health insurance premiums in 2023 are $8,435 for single coverage and $23,968 for family coverage. These average premiums each increased 7% in 2023. The average family premium has increased 22% since 2018 and 47% since 2013.

What is the most expensive health insurance? ›

Platinum health insurance is the most expensive type of health care coverage you can purchase. You pay low out-of-pocket expenses for appointments and services, but high monthly premiums. Plans typically feature a small deductible or no deductible and cheap copays or coinsurance.

Is $200 a month good for health insurance? ›

Is $200 a month expensive for health insurance in California? No, health insurance that costs $200 per month is a good deal in California. Silver plans typically cost $469 per month for a 21-year-old or $600 per month for a 40-year-old.

Why is health insurance so expensive? ›

Administrative Overhead: Health insurers often have substantial administrative overhead, including marketing, underwriting, and claims processing. These costs are passed on to consumers in the form of higher premiums, which can contribute to overall healthcare expenditure.

Who typically pays for the cost of an individual health plan? ›

Your Premium

Or your employer may pay all or part of the premium. If you buy individual/family coverage through Covered California and you qualify for a premium subsidy, the federal government will pay part of your premium.

Is the portion of your health insurance paid by your employer taxable? ›

Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer's excludable contribution to health coverage continues to be excludable from an employee's income, and it is not taxable.

What is the percentage of cost of benefits per employee? ›

According to the Bureau of Labor Statistics, the average cost of benefits per employee in the private industry is $10.88 per hour — around 30% of the total cost of hiring an employee.

What happens in America if you have no health insurance? ›

If you don't have health insurance, you're at much greater risk of accumulating medical bills that you may not be able to pay. In a worst-case scenario, you could be sued and have your wages garnished. You might even be forced into bankruptcy.

How much does the average American pay out of pocket for healthcare? ›

Given that the average household income in the U.S. is $87,864, as of 2023, that means the average American family spends at least $4,393 in these expenses each year.

How many US citizens do not have health insurance? ›

The Share of Americans without Health Insurance in 2022 Matched a Record Low. In 2022, 26 million people — or 7.9 percent of the population – were uninsured, according to a report in September 2023 from the Census Bureau.

What are the top 3 health insurances? ›

Best Health Insurance Companies for 2024
  • Best Overall: Blue Cross Blue Shield.
  • Highest Quality Plans: Kaiser Permanente.
  • Most Health Management Programs: Oscar.
  • Best for Same-Day Care: Aetna CVS Health.

Who is the number 1 health insurance in the US? ›

1. UnitedHealth Group. UnitedHealthcare, part of UnitedHealth Group, is the largest health insurance company based on revenue. UnitedHealthcare offers a variety of products from individual health insurance to employer plans for some of the biggest corporations.

How much is the cheapest health insurance in the US? ›

The cheapest health insurance companies for Bronze plans are Kaiser Permanente, Aetna and Ambetter. A Bronze plan is typically the cheapest health insurance with full medical benefits. The average cost of a Bronze plan for 2024 is $462 per month. These plans follow Affordable Care Act (ACA) guidelines.

How much is health insurance in Texas per month for one person? ›

How much does health insurance cost in Texas? Health insurance in Texas costs an average of $584 per month for a Silver plan and $519 per month for a Gold plan in 2024.

What is the recommended level of coverage? ›

Most financial experts recommend raising your liability to $50,000 per person and $100,000 per accident if you have few assets. With more assets — like a house, expensive car, or large amounts of savings — experts recommend bumping your coverage up to at least $100,000 per person and $300,000 per accident.

Is health insurance deductible? ›

Health insurance premiums are deductible if you itemize your tax return. Whether you can deduct health insurance premiums from your tax return also depends on when and how you pay your premiums: If you pay for health insurance before taxes are taken out of your check, you can't deduct your health insurance premiums.

How much is health insurance for a single person in Florida? ›

How much does health care cost in Florida? For major medical plans, the cheapest individual monthly premium starts at $177, but the average monthly cost of health insurance in Florida is approximately $467 per person. The actual prices will vary depending on your age, gender, medical history, and ZIP code.

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