Employer-Sponsored Health Insurance – The Average Cost

HBI Blog / Employer-Sponsored Health Insurance – The Average Cost

According to a research carried out in 2019, the average cost of the annual premium for employer-sponsored health insurance was approximately $7,188 for single coverage, whereas, in the case of family coverage, the amount was about $20,576. As per the report, the average annual deductible amount was around $1,655 for covered workers with single coverage.

Employer-sponsored coverage is the health insurance that is offered through the job. It is also known as employer-provided health insurance and offers coverage for current workers of the institution along with the retirees. An employer offers a choice of group health plans to the eligible workers and covers a part of the insurance premium. This type of insurance is the most common type of health coverage in the US.

Employer-Sponsored Health Insurance - The Average Cost

The insurance cost of a single premium has increased by 4 percent, and that of family premium has increased by 5 percent on average over the last year. However, specialists have taken a view at the long-term changes in the insurance premiums and have found out that there has been a 22 percent rise in the employer-sponsored family health coverage over the past 5 years, and around 54 percent over the last 10 years.

Although the average cost of insurance premium has risen over the past years, health insurance provided by the employer might be an affordable option in comparison to individual health insurance coverage.

Around 31 percent of employees, who work at small firms, have claimed that the premium for their single coverage was paid by the employer. Around 35 percent of such employees were enrolled in such a plan where their contribution was around half of the premium for family coverage. In 2019, a covered employee contributed $1,242 on average for single coverage and $6,015 for family coverage.

As said earlier, employer-provided health insurance is one of the most common and popular coverage in the US. In comparison to individual health insurance costs, it is affordable too.

Leave a Reply

Your email address will not be published. Required fields are marked *