August 28, 2019
The average American family of four spent $7,726 on healthcare costs last year, for those with employer-provided coverage, according to a new analysis from Kaiser Family Foundation (KFF). To put that in perspective, you can buy a brand-new Harley-Davidson motorcycle for roughly the same amount.
To get specific, the average American family spent $4,706 on premiums and $3,020 on out-of-pocket costs, including deductibles and co-payments in 2018. That represents an increase of 67% since 2008.
If you include the employer’s share of healthcare costs, the price tag increases to $22,885 annually, which is about the cost of a compact car, a Honda Insight or a Volkswagen Beetle, for example. That’s an increase of 56% since 2008.
Cynthia Cox, vice president of KFF, tweeted about the analysis and the cost of healthcare for families and employers. “It’s a lot,” she said.
In fact, healthcare costs have risen twice as fast as wages and three times faster than inflation over the last decade, according to KFF’s analysis. During that 10-year period, wages rose 31%, and inflation increased 21%.
Roughly half the U.S. population gets its health coverage through an employer. On average, employees of large firms contribute 34% of the total cost of coverage for themselves and their families. That’s a 2% increase compared to a decade ago.
Families contribute 67% more to their health benefits than they did a decade ago, according to KFF. Meanwhile, employers contribute 51% more.
For employees, the increase is driven primarily by rising deductibles. According to KFF, there’s been a significant increase in both the share of workers who must meet an annual deductible, and in the size of the deductible.
Connect Healthcare is coming up October 2 and 3, 2019 at The Resort at Pelican Hill in Newport Coast. More information about the event and registration details can be found here.
For questions, comments or concerns, please contact Jennifer Duell Popovec