Report highlights growing cost of employer-sponsored health insurance

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Workers are paying more for their coverage but are receiving fewer benefits

The Commonwealth Fund has released a new report that highlights the growing costs of employer-sponsored health insurance in the United States. While the Affordable Care Act has not lead to a significant increase in insurance premiums for many people, it may not be providing much relief to workers. The report from the Commonwealth Fund suggests that insurance premiums for workers are slowly increasing, while the benefits they receive through this coverage are vanishing.

Worker contributions are growing throughout the country

According to the report, the average contribution a worker makes for their insurance coverage and the average deductible of this coverage represent 9.6% of their median income. This is a 8.4% increase over the costs that workers faced for coverage in 2010. Insurance rates are rising, but more slowly than had been anticipated by those that criticized the Affordable Care Act. Despite slower growth in premiums, workers are facing a more problematic situation: The benefits they had enjoyed in the past are becoming less available.

Rising medical costs could be a reason behind insurance coverage for workers becoming more expensive

health insurance industry employer workWorkers are beginning to pay more for coverage, but receive fewer benefits. This may be due to the growing cost of medical services, which the insurance industry has warned of for several years. As medical care becomes more expensive, health insurance providers must increase premiums in order to recover from the losses they experience and continue doing business. Some insurers have begun removing benefits from the insurance plans they offer, placing these benefits in more expensive packages that may not be attractive or financially viable for employers.

Lowest financial burden for sponsored health insurance coverage among workers can be found in Hawaii

Overall, the report shows that those working in Hawaii and receiving employer-sponsored health insurance suffer the least financial burden. In Hawaii, the cost of employer-sponsored insurance coverage is approximately 6% of a worker’s median income. Employee contributions in every state in the country have increased, however, sponsored coverage more expensive nationwide.

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