Studies on affordability show the crisis in America
With affordability dominating the headlines and healthcare as high as number two in midterm election polls, I wanted to do a quick blog on recent healthcare affordability studies – some of these previously mentioned in these pages.
KFF Employer Survey
Healthcare policy group KFF annually surveys employers on healthcare cost trends. The survey released in October showed the recent trend of huge surges in utilization and overall employer costs for healthcare.
KFF found the following:
- The cost of family coverage for an employer has reached almost $27,000 per year — $26,993.
- Families cover almost $7,000 of that amount for premium contributions — $6,850.
- Individual coverage is now $9,325 per year.
- Healthcare costs were up 7% in 2024 and 6% in 2025.
- Deductibles for single coverage ranged from $1,670 at large firms and $2,671 at small ones, with an average of $1,886.
- Due to costs, about one-third of those covered by employer coverage are now in high-deductible plans.
Rice University/Baylor College of Medicine
Researchers from Rice University and Baylor College of Medicine looked at worker contributions to employer coverage over time. It found the following:
- Average worker contributions toward family insurance premiums grew by 308% between 1999 and 2024.
- Total premiums increased 342%, while average worker earnings increased by 119% and inflation increased by 64%.
The Commonwealth Fund
The Commonwealth Fund analyzed national data from 2024. It found the following:
- About 167 million people under the age of 65 get their health insurance through an employer or a family member’s employer coverage.
- Employers on average pay about 70% of premiums.
- Family coverage premiums averaged $24,540 in 2024, with employees contributing $7,216 annually.
- Premium contributions for family coverage ranged from an average of $5,584 in Oregon to $9,148 in California.
- Middle-income workers and their families are spending an average of 10.1% of median income on healthcare premiums and deductibles.
- In 19 states, the average premium and deductible contribution was over 10% of state median income.
- In 26 states, deductibles for single coverage were equal to 5% or more of median individual income in 2024.
KFF on non-employer Exchange coverage
KFF looked at the impact of the expiration of the enhanced premium subsidies at the end of 2025 on overall premiums and those for subsidized individuals. It came away with these key facts:
- Exchange plans’ premiums increased on average 26% for 2026.
- In states that run their own Marketplaces, the average benchmark (second-lowest cost) silver premium rose 17%. In states that use the federal Healthcare.gov site, premiums for these plans rose an average of 30%.
- Over 90% of all Exchange enrollees now get some sort of premium subsidy. Because of the expiration of the subsidy enhancements, premiums went up for this group about 114% on average – more than double.
#healthcare #coverage #employercoverage #exchanges #affordability
— Marc S. Ryan
