Employers See Health Insurance Costs Jump

September 29, 2011 (PLANSPONSOR.com) – An annual survey by the Kaiser foundation, along with the Chicago-based Health Research and Educational Trust, found a huge increase in health insurance costs in 2011, after years of relatively small increases.

The Philadelphia Inquirer reports prices rose 9% for family coverage, with the average family premium reaching $15,073 and employees only picking up $4,129 of that cost. Last year, family premium prices rose 3%. The average cost of a single worker’s plan is $5,429 with workers paying $921 toward the premium.  

Kaiser believes this reflects the influence of the Patient Protection and Affordable Care Act. About 2.3 million young people gained coverage because of the new law.  

Other key findings from the survey include: 

  • More and more workers are enrolled in high deductible health plans. In 2005, these plans barely existed and now 17% of employees are enrolled in them. 
  • Twelve percent of those enrolled in high deductible plans face a deductible of $2,000 or more for single coverage. Half employed in small firms pay more than $1,000. 
  • In 1988, two-thirds of all large firms offered health benefits to retirees. In 2011, it’s barely one in four. 
  • Even though the average family premium is about $15,000, coverage for one in five families tops $18,087. 

Full survey results are available at http://ehbs.kff.org/.