Employer-Sponsored Health Insurance Costs Are Jumping

By: Anneken Tappe · October 20, 2023 · Reading Time: 2 minutes

Rising Costs

Healthcare in America is not exactly known for being cheap. But it has only gotten even more expensive this year.

The annual cost of an employer-sponsored family health insurance plan just hit an average of almost $24,000 — up 7% from last year, according to a survey from health non-profit KFF.

Who Pays What?

It costs how much?! Well, one thing at a time.

These climbing costs will likely affect companies more than workers, as is typical for employer-sponsored plans. However, roughly 1 in 4 companies intend to increase employee premiums in the next couple years. On a whole, costs have risen for both parties.

For family plans, workers now pay an average of $6,575 per year, up around 8% annually. For individual plans, companies pay an average $8,435, or an increase of 7%, while employees are on the hook for close to $1,400, $75 more than last year’s average.

Quality Coverage

The silver lining is that, despite this price hike, companies are unlikely to cut back on coverage. In today’s still-tight labor market, companies want to attract the best employees. Offering quality health coverage is a great way to do so.

Read more reporting here .

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender