Employers and workers are facing another year of increased costs for health insurance premiums. Costs are often too high for small businesses, but passing the burden to employees is a non-starter.
That’s where a true consultant like ClaimLinx comes in. Our experts find the best plan to fit each client’s needs and budget. That’s especially important when facing the current health insurance market.
In a study from the Kaiser Family Foundation, Family premiums for employer-sponsored health insurance rose 7% this year to reach an average of $25,572 annually.
This marks the second year in a row that premiums are up 7%. Over the past five years—a period of high inflation (23%) and wage growth (28%)—the cumulative increase in premiums has been similar (24%).
Link to Study: Annual Employer Family Premium Study
How much are families spending on premiums?
Family premiums for employer-sponsored health insurance increased by 7% this year, averaging $25,572 annually. Workers, on average, contribute $6,296 each year toward the cost of family coverage.
This marks the second consecutive year of a 7% increase in premiums. ClaimLinx helps our clients save on their health insurance premiums.
Over the past five years, which have seen high inflation (23%) and wage growth (28%), the total increase in premiums has also been significant, totaling 24%.
What are employers seeing with health insurance premiums?
Employers are experiencing a consistent increase in total premiums for family coverage. However, the average amount that employees contribute towards their annual premiums has remained stable over the last five years, rising by less than $300 since 2019, an overall increase of just 5%. This trend may be attributed to a tight labor market.
Workers with single coverage face an average annual deductible of $1,787 this year, slightly up from last year’s average of $1,735 and an 8% increase since 2019 when it was $1,655.
How are small businesses adapting to these increases?
On average, employees at small firms (with fewer than 200 workers) encounter significantly higher deductibles than those at larger firms, with averages of $2,575 compared to $1,538, respectively. Additionally, among all covered workers, 32% of those at smaller firms have an average single deductible of at least $3,000.
KFF President and CEO Drew Altman says this burden has become increasingly difficult for both companies and workers.
“Employers are spending an amount equivalent to purchasing an economy car for each employee every year to provide family coverage. In recent years, due to the tight labor market, they have found it increasingly difficult to shift costs onto workers who are already facing challenges with healthcare expenses.”
How can ClaimLinx help employers save money?
On average, ClaimLinx clients save 20% or more in their first year of implementing our unique solution. Our expert consultants have pioneered a strategy for cutting costs while maintaining benefits.
The key to our trailblazing ClaimLinx Simple Option Solution is centered on making sure businesses are only paying for the benefits their employees are using. That’s where so much of the additional cost for a traditional health insurance plan with a major carrier comes in. They’re charging you for services they assume you will use. Services the average employee just doesn’t need.
With ClaimLinx you still purchase a plan with a major carrier but make it a high-deductible plan, without all those benefits overcharged through the insurance company. Then we add a self-funded Medical Expense Reimbursement Plan (MERP) with all the benefits you’re used to, including lower deductibles and copays.
Related Post: How Coordination of Benefits Saves Money for Your Employees
Your employees won’t see a change in how much they pay when visiting a physician or facility, but your company will save monthly on premiums and overall health insurance costs.
How do I get started?
If you’re interested in the ClaimLinx simple option solution, please contact our sales team at sales@claimlinx.com or schedule a consultation.