For single coverage and family coverage, the average annual rates in 2022 are $7,911 and $22,463, respectively. The rates in 2021 ($7,739 for single coverage and $22,221 for family coverage) are comparable to these amounts. During 2017 and since 2012, the average family premium has grown by 20% and 43%, respectively.
With this graphing tool, users can examine historical premium and employee c variations for covered employees at various business types: https://www.kff.org/interactive/premiums-and-worker-contributions/
The cost of single and family coverage premiums
- In 2022, the average annual premium for single coverage will be $7,911. Family coverage costs, on average, $22,463 a year [Figure 1.1].
- Comparable to the average premium for covered workers in large organisations ($7,873) is the average yearly premium for single coverage for covered workers in small enterprises ($8,012). The average family coverage premium paid annually by covered workers in small businesses ($22,186) is comparable to the average premium paid annually by covered workers in large businesses ($22,564). See [Figure 1.3].
- The average annual premiums for covered workers in HDHP/SOs are lower than the average premiums for coverage overall for both single coverage ($7,288 vs. $7,911) and family coverage ($21,136 vs. $22,463). The average premiums for covered workers in PPOs are higher than the overall average premiums for both single coverage ($8,272 vs. $7,911) and family coverage ($23,426 vs. $22,463) [Figure 1.1].
- The average premiums for covered workers with either single or family coverage are relatively higher in the Northeast and relatively lower in the South [Figure 1.4].
- The average premium for family coverage for covered workers in the the Transportation/Communications/Utilities categories is higher than the average single premium for covered workers in other industries [Figure 1.5].
- The average premiums for covered workers in firms with a relatively large share of lower-wage workers (where at least 35% of the workers earn $30,000 annually or less) are lower than the average premium for covered workers in firms with a smaller share of lower-wage workers for both single coverage ($7,267 vs. $7,973) and family coverage ($20,211 vs. $22,681) [Figure 1.6] and [Figure 1.7].
- Comparable to the average premium for covered workers in large organisations ($7,873) is the average yearly premium for single coverage for covered workers in small enterprises ($8,012). The average family coverage premium paid annually by covered workers in small businesses ($22,186) is comparable to the average premium paid annually by covered workers in large businesses ($22,564). See [Figure 1.3].
Average premiums vary with the distribution of ages of workers within firms.
- For single coverage, the average annual premiums for covered employees in firms with a relatively large share of younger employees (at least 35% of the workforce must be under the age of 26) are less than those for employees in firms with a smaller share of younger employees ($7,341 vs. $7,978) [Figure 1.6] and [Figure 1.7].
- For both single coverage ($8,252 vs. $7,579) and family coverage ($23,197 vs. $21,748), the average annual premiums for covered workers in firms with a relatively large share of older workers (where at least 35% of the workers are age 50 or older) are higher than the average premium for covered workers in firms with a smaller share of older workers. Figures 1.6 and 1.7 are shown.
Figure 1.1 shows the average annual premiums for single and family coverage for covered workers in 2022 by plan type.
Figure 1.2 shows the average annual premiums by firm size for single and family coverage for covered workers in 2022.
Figure 1.3 shows the typical monthly and yearly premiums for covered workers in 2022, broken down by plan type and firm size.
Figure 1.4 shows the typical monthly and annual premiums for covered employees, broken down by plan type and region. 2022
Figure 1.5 shows the typical annual and monthly premiums for covered workers in 2022 by plan type and industry.
Figure 1.6 shows the 2022 average annual premiums for covered workers with a single policy.
Figure 1.7 shows the typical annual premiums for covered employees with family coverage in 2022, broken down by firm characteristics.
Figure 1.8 illustrates the typical annual premiums for covered employees in 2022 by firm characteristics and firm size.
ADVANCED DISTRIBUTION
The premiums for both single and family coverage continue to vary greatly.
- A single premium for 18% of covered workers is at least 20% greater than the average single premium, whereas a single premium for 23% of covered workers is less than 80% of the average single premium [Figure 1.9].
- In terms of family coverage, 22% of covered workers work for companies where the family premium is less than 80% of the average family premium, while 19% of covered workers are employed by companies where the family premium is at least 20% greater than the average family premium [Figure 1.9].
Thirteen percent of covered workers are in a firm with an average annual premium of at least $10,000 for single coverage [Figure 1.10]. Eleven percent of covered workers are in a firm with an average annual premium of at least $29,000 for family coverage [Figure 1.11].
PREMIUM CHANGES OVER TIME
Figure 1.12, the average premiums for single and family coverage are comparable to those from the previous year.
- Similar to the growth in the average premium for family coverage during the same period (20%), the average premium for single coverage has increased by 18% since 2017 [Figure 1.12].
- The average family premium in 2022 will be $22,463, which is a 20% increase from the average premium in 2017 and a 43% increase from the average premium in 2012. The 19% growth between 2012 and 2017 and the 20% growth in family premiums over the last five years are comparable [Figure 1.15].
- The average family premium has grown faster since 2017 for covered workers in small firms as compared to covered workers in large firms (26% for small firms and 17% for large firms). For small firms, the average family premium rose from $17,615 in 2017 to $22,186 in 2022. For large firms, the average family premium rose from $19,235 in 2017 to $22,564 in 2022 [Figure 1.13].
- The average family premium has grown at a similar rate since 2012 for covered workers in small firms as compared to covered workers in large firms (45% in small firms and 41% in large firms). In small firms, the average family premium rose from $15,253 in 2012 to $22,186 in 2022. In large firms, the average family premium rose from $15,980 in 2012 to $22,564 in 2022 [Figure 1.13].
- For covered workers in large firms, over the past five years, the average family premium in firms that are fully insured has grown at a similar rate to the average family premium for covered workers in fully or partially self-funded firms (13% for fully insured plans and 18% for self-funded firms) [Figure 1.14].
- The average family premium in 2022 is similar to the average family premium in 2021, which compares to a substantial jump in inflation between the first three months of 2021 and the same period in 2022, 8%. This significant jump in inflation brings the growth in the average premium for family coverage over the last 5 years much closer to the rate of inflation over the same period (20% vs. 17%). The growth in the average premium for family coverage still outpaces the rate of inflation over the last ten years (43% vs. 25%) [Figure 1.15].
