Inflation continues to rise, increasing health insurance premiums for Americans. Employer-sponsored insurance (ESI) is the largest source of health insurance coverage in the United States. Employer health insurance premiums have continued to rise quicker than wages and inflation.
According to The Los Angeles Times, two in five adults enrolled in employer-sponsored coverage find it difficult to afford health care and insurance costs. Commercial rates for hospital care are averaging 224 percent of Medicare rates.
The Cost Of Employer-Sponsored Insurance
According to a recent analysis from the Kaiser Family Foundation, in 2021, the average ESI premium for single coverage was $7,739 per year, and the average ESI premium for family coverage was $22,221 per year. Additionally, with those plans, the average deductible for single coverage was $1,669, and the average aggregate deductible for family coverage was $4,705.
To combat the increasing costs of ESI, it’s vital to take immediate action to bring down costs. As an employer, it can be challenging to negotiate prices on plans. However, many consider the option of joining other firms to combine buying power to obtain fair provider prices.
Those with lower incomes may find it increasingly challenging to keep up with the ESI rates. In 2020, the Commonwealth Fund survey defined the word, “underinsured” as being covered by a plan with high out-of-pocket costs, the findings were that one-fourth of working-age adults in employer plans were underinsured.
How GMS Can Help
A partnership with GMS allows you to provide the best healthcare benefits to your employees. When it comes to medical coverage, this is a necessity for your employees. As the economy fluctuates, your health insurance pricing cannot. With GMS, we give small businesses the buying power of a large corporation. GMS represents over 40,000 worksite employees, allowing businesses to receive a lower rate. Retake control of this essential benefit, and contact GMS today!