Family health plan costs exceed $20,000 for first time

The cost of insurance offered through employers keeps rising faster than wages and inflation.

The average cost of family coverage in employer health plans pushed above the $20,000 mark for the first time this year, according to a new report, as the 5% average increase in premiums exceeded the growth rate for wages and general inflation.

Low-wage workers face unique challenges, the study found, since they are less likely to be offered employer coverage and must pay a larger share of the premium when they have the chance to buy it.

The numbers come from an annual national survey by the California-based Kaiser Family Foundation on cost trends for employer health plan coverage, the market where about 153 million Americans obtain health insurance via private-sector carriers.

“The average family premium is now $20,000, so that’s a milestone — not, obviously, in a good way,” said Drew Altman, the foundation’s president, in a news conference on Wednesday. “It’s as expensive as buying an economy car, but buying it every year.”

View the complete September 25 article by Christopher Snowbeck on THe StarTribune website here.