The outlook for 2024 health insurance prices

money Jan. 12, 2024 https://money.com/health-insurance-premiums-increase-2024/

After seeing double-digit price increases on all kinds of products in recent years, shell-shocked consumers might not think a 6.5% price hike sounds all that bad. But health insurance plans tend to be extremely expensive: On average, they cost about $8,500 for singles and $24,000 for families, according to KFF. Assuming the projections are accurate, that means the cost of those health plans will jump this year by about $550 and $1,500, respectively.

The good news is that — in theory — you won’t have to foot the entire increase yourself. Employers typically split the cost of health insurance with their employees, with a portion of the cost deducted from each paycheck in the form of a premium.

Exactly how much of this overall increase in cost for health plans will come out of your pocket depends on how your employer plans on dealing with the elevated prices. Additionally, employer size tends to play a major role in how much a company contributes to a worker’s health plan, KFF says.

In 2023, KFF found that employers generally covered 83% of the cost of annual premiums for singles, leaving 17% to their workers. For family coverage, employers covered less — 71%. However, workers at companies with fewer than 200 employees typically had to spend more out of pocket. For family plans, as an example, small companies typically paid only 62% of the premium.

Other factors such as industry, region and the type of health plan may also play a part in how much you’re ultimately on the hook for. Across the board, though, you can prepare to pay more for health coverage this year.

*To find out how to reduce your health care spend, for both employer and employee, telethink.net for more information.