A recent study has found that the cost of health insurance provided by employers has been rising sharply, putting more financial strain on employees. This is especially concerning because employer-sponsored insurance (ESI) is the primary form of coverage for over half of Americans.
The study, conducted by the State Health Access Data Assistance Center (SHADAC) at the University of Minnesota, shows that in 2024, the average annual premium for family coverage offered by employers increased to $24,540—up more than $600 from the previous year. For individual coverage, premiums rose by over $300, reaching an average of $8,486.
In some states, the cost increases were even higher. Delaware saw the biggest jump, with family premiums rising by more than $5,800, a 26% increase, from $22,049 to $27,859. Alabama and Rhode Island also experienced significant hikes in premiums.
Along with premium increases, workers are facing higher deductibles. The average deductible for family coverage surpassed $4,000 for the first time in 2024, marking an 8% rise from the previous year. This means that not only are premiums going up, but the amount workers need to pay out-of-pocket before insurance kicks in is also growing.
The shift toward high-deductible health plans (HDHPs) is contributing to the problem. More than half of workers with employer-sponsored insurance (51.7%) are now enrolled in these plans, which tend to have lower monthly premiums but come with much higher out-of-pocket costs. In fact, over 60% of workers in 22 states are now enrolled in HDHPs.
Experts say this trend is part of a larger issue: healthcare costs are becoming a growing burden for workers, yet employer-sponsored insurance is often overlooked in policy discussions. While the focus is often on public health programs like Medicare and Medicaid, many workers with ESI are left to deal with rising costs on their own.
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