Americans have options when it comes to health insurance coverage, including Medicare, Medicaid, and private health insurance. But the number of Americans who depend on employer-offered coverage far exceeds those who rely on other forms of insurance to help cover the cost of medical care. Unfortunately, employer-sponsored policies are costing Americans an extra 4 percent in premiums this year, according to a recent survey by KFF.
The KFF poll discovered that the average household premiums for health coverage through work is now up to $21,342 this year, and rising. On average, employees paid almost $5,600 in family coverage this year, up from approximately $4,000 just 10 years earlier.
Employer-Offered Health Insurance Costs Have Spiked Over Recent Years
The cost of family health insurance has risen from 3 to 5 percent since 2012. Over this past decade, health insurance costs spiked 55 percent, which is a far greater pace than that of wages and inflation. Costs have not increased by these rates in over 15 years.
With the ongoing health crisis across the nation, it remains to be seen if continued spikes in employer-based health insurance will continue as employers deal with the effects of the pandemic. Employers help ensure that employees are not stuck with sky-high health insurance premiums, but workers are still often stuck paying high deductibles and copayments.
The KFF poll found that while employers help to keep premiums down to some degree, employees are still paying a hefty amount. More specifically, workers pay an average of 17 percent of the premium for individual coverage and 27 percent for family coverage. And at smaller companies, the numbers are even higher: employees who work for these smaller firms pay 35 percent of the premium for family coverage.
Deductibles are also up. Annual deductibles are now $1,644, up 25 percent over the past five years.
Health Sharing Programs Present a Cost-Effective Option
Health insurance is designed to help take the financial sting out of paying for medical care out-of-pocket. But even with financial assistance, the costs can still be unreasonably high. As per the finding of the KFF survey, even employer-based health insurance costs are soaring and can often be too much of a financial burden for a family.
Luckily, American families can explore other options to handle rising medical costs. Growing in popularity every year, health sharing ministries present a viable option for those who are looking to cut down on the costs of health care while also taking advantage of other perks. Members of Christian health sharing programs may save as much as 40 percent or more compared to the average cost of health insurance premiums per month.
At the same time, health sharing ministries like UHSM offer members pharmacy benefits and the ability to choose from a nationwide network of over 1 million healthcare providers. By sharing the expense of medical care with a group of like-minded people of faith, program members also reap the rewards of the joy of giving to others.
At UHSM, we offer a variety of programs to meet the medical and financial needs of our members. If you’re looking for a better option to manage the expenses associated with health, speak with a representative from UHSM today to discuss your options and decide which program is best suited for you. Click here to see how much you can save with a health share program.