According to Census data and other studies, more than half of Americans get their health insurance through their employer. And health insurance is among the top benefits that employees look for when considering a job move. More than one-third of Americans get coverage through Medicaid or Medicare. About 10% buy coverage on their own, and another 3%+ rely on Tricare, VA, and ChampVA, the spouse, widow(er), and children’s civilian medical program of the VA.
Forbes Advisor reported in May 2023 that the average monthly premium for a Bronze Affordable Care Act (ACA) health insurance plan was $928. For an upgrade to a Silver Plan, monthly costs increase to $1,217. A Gold plan averages $1,336. Of course, those averages do not take into consideration the premium tax credits and subsidies that are available to about four in five individual market customers of the federal and state marketplaces.
The Kaiser Family Foundation (KFF) said in September 2023 that enrollment in the Health Insurance Marketplace hit a record high in 2023. The run-up in enrollment is attributable, at least in part, to enhanced subsidies included in the Inflation Reduction Act and the American Rescue Plan Act enacted by Congress in response to the COVID-19 pandemic. KFF says there are 18.2 million enrolled in the individual market in 2023 – up from 17 million in 2022 and 14.1 million in 2020.
ValuePenguin says the 2023 national average cost of individual health insurance in $560 per month for a 40-year-old applicant with a Silver Plan. In California, it is slightly lower: $541. In Florida, it’s nearly $600, while a Kansan pays $565. In neighboring Nebraska, the average is $652. In New York, the Silver Plan average for a 40-year-old is $776, although West Virginia has the highest cost: $871.
Bronze-tier plans offer lower rates but come with higher copays. Gold- and Platinum-tier plans have higher premiums, but often offer better coverage and lower copays and coinsurance amounts.
The 2023 report on employer-sponsored health benefits is not out from the Kaiser Family Foundation (as of September 2023). However, the 2022 KFF Employer Health Benefits Survey did find average annual premiums approach $8,000 for single coverage and topped $22,43 for family coverage.
Most insured workers do contribute toward the cost of their employer-sponsored insurance. On average, they contribute 17% toward single coverage and 28% toward family coverage in 2022. Smaller firm workers contribute more toward family coverage than workers at large firms (36% vs. 26%).
Average annual contributions by those insured were $1,327 for single coverage and $6,106 for family coverage. Premiums for 2024 are expected to increase. The Peterson-KFF Health Tracker is forecasting a median increase of six percent. The Society for Human Resource Management (SHRM) is anticipating a 7% rise in 2024 costs. Aon is forecasting an even bigger bump of 8.5%. If the latter occurs, that could push the cost to more than $15,000 per employee in 2024, which includes both the employer and employee contributions.