Employer-sponsored health insurance is becoming more expensive

New report finds that workers in the US are paying more for their insurance coverage

The Commonwealth Fund has released a new report that has found that the rate of growth in health insurance costs for employer-sponsored coverage has grown significantly since 2010. While the Affordable Care Act has helped mitigate the rate at which insurance premiums and costs have grown, it may not have provided significant financial benefit for individuals receiving coverage through their employers. As such, employer-sponsored insurance coverage is becoming more expensive for workers.

Premiums are growing, but at a slower rate than in the past

The report shows that premiums for employer-sponsored coverage rose by 4.1% every year from 2010 to 2013. This is slower than the premium growth that was reported from 2003 to 2010, but the report also shows that workers are beginning to spend more money on the coverage that they receive from their employers. According to the Commonwealth Fund, monthly contributions coming from workers for their employer-sponsored coverage have grown by 93% over the past decade.

Premiums for family coverage is also on the rise, but incomes are not growing as quickly

online health insuranceThe report notes that premiums are growing at a faster rate than income. This is creating some financial tension for workers in some sectors. Premium growth is most prevalent among individuals rather than families. Premiums for family coverage have increased by 73%  over the past decade. Family income for families only rose by 16% from 2003 to 2013. The financial strain that some people are experiencing because of growing premiums is causing them to seek coverage from other sources, including their state’s insurance exchange.

Workers are spending more on deductibles

According to the report, health insurance deductibles for employer-sponsored coverage is also growing, through slowly because of provisions of the Affordable Care Act. From 2010 to 2013, deductibles rose by approximately 7.5% every year, compared to the 10% increase they rose from 2003 to 2010. The report also found that last year, 81% of workers in the U.S. had deductibles, suggesting that they were paying more for coverage, but receiving fewer benefits from this coverage.

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