Illinois Employer-Sponsored Healthcare Premiums Rise
This year, health insurance rates increased as a result of a post-pandemic spike in the price of care. This places an additional strain on companies and employees at a time when inflation reduces overall purchasing power.
The annual KFF survey of more than 2,000 employers in the United States found that the average premium for employer-sponsored health insurance for families in the United States increased by 1% in the previous year. This year, however, the survey found that the cost increased by 7% to almost $24,000. The similar percentage increase was seen for both individual and employer-based coverage premiums.
The annual increase in premiums for the approximately 153 million individuals in the United States who receive health insurance via their employers is a recurring phenomenon. However, the escalation projected for the year 2023 is a significant concern for employers, especially in light of the concurrent surge in prices for various commodities and services. In KFF's survey, it was found that the financial burden of premiums is typically divided between employers and
The annual increase in premiums for the approximately 153 million individuals in the United States who receive health insurance via their employers is a recurring phenomenon. However, the escalation projected for the year 2023 is a significant concern for employers, especially in light of the concurrent surge in prices for various commodities and services. In KFF's survey, it was found that the financial burden of premiums is typically divided between employers
and employees, with employers contributing an average of 71%
towards family coverage costs.
Matthew Rae, the co-author of the research and associate director of KFF's Health Care Marketplace Program, stated that the number in question is substantial and cannot be understated. For a household consisting of four individuals, the annual expenditure required to provide health insurance coverage is comparable to the cost of purchasing a new car.
The study claimed that the 7% increase observed was the most since 2011. However, it is important to note that Rae cautioned against interpreting this as a statistically significant difference compared to certain years, considering the margin of error associated with the poll. According to the speaker, the significant increase in inflation observed throughout the year 2022 was the driving force behind the current upward trend.
According to Rae, it is evident that inflation is being transferred to premiums, mostly due to factors such as increased wages for health-care personnel.
During the course of the pandemic, enterprises experienced additional expenses related to Covid testing, treatment, and vaccines. However, employers observed a moderation in their health-care expenditure as individuals postponed surgeries
and other medical procedures. Certain companies have intensified their examination of health expenditures, displaying caution due to the potential legal liability that may arise if they do not effectively supervise the funds being disbursed.
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According to Rae, it is premature to determine whether the increase in premiums is a transient outcome influenced by factors specific to the pandemic era or the commencement of a new phase
characterized by substantial escalation in healthcare expenses. Observers in the industry are closely monitoring many aspects such as the extent of prescription drug coverage, the constrained labor market, and the sustained escalation of prices within the sector.Both employers and workers experience the burden of increased expenses. The premium contributions for both categories have experienced a growth of approximately 20% throughout the course of the last five years.Employers allocate substantial financial resources into health insurance coverage with the objective of attracting and retaining highly skilled personnel. According to Rae's statement, it can be inferred that... Given the current state of the job market, it is advisable to refrain from economizing on the coverage provided if one intends to pursue a particular course of action.
Source: Crain's Chicago