Survey: Annual 2022 health premiums steady, but may be ‘calm before the storm’

Annual family premiums for employer-sponsored health insurance averaged $22,463 last year, according to the 2022 benchmark KFF Employer Health Benefits Survey.

The average premium for family coverage has increased 20% over the last five years and 43% over the last ten years, according to the survey.

“Employers are already concerned about what they pay for health premiums, but this could be the calm before the storm, as recent inflation suggests that larger increases are imminent,” KFF president and CEO Drew Altman said.

“Given the tight labor market and rising wages, it will be tough for employers to shift costs onto workers when costs spike.”

On average, workers are contributing $6,106 toward the cost of family premium, with employers paying the rest. Among workers who face an annual deductible for single coverage, the average last year stood at $1,763, similar to 2021 ($1,669), but up 61% since 2012 ($1,097).

Spending differs based on company size

The report reveals ongoing disparities in the burden of health care costs on workers at smaller and large employers. Workers at small firms (with less than 200 workers) on average pay $7,556 out of their paychecks annually for family coverage – nearly $2,000 more than workers at larger firms ($5,580).

For single coverage, workers at small and large firms contribute similar amounts toward their coverage, though small-firm workers face much larger deductibles on average ($2,543 vs. $1,493). Viewed another way, nearly half (49%) of workers at small firms face an average deductible of at least $2,000, while just a quarter (25%) of workers at large firms do.

Almost 159 million Americans rely on employer-sponsored coverage.

The modest change in premiums last year was unusual in that it was less than the increase in inflation (8%) or workers’ wages (6.7%) during the same period, according to the study. Even with the 2022 minimal change, average premiums for family coverage have risen 43% since 2012, more than the shift in inflation (25%) and a little more than wages (38%) over the same period.

 Rise seen in mental-health services usage

Almost half (48%) of large employers report an increase in the share of workers using mental-health-care services, and more than a quarter (29%) say more workers are asking for family leave due to mental-health issues, the survey said.

A smaller share of large employers say they have seen an increase in the share of workers using substance use services (14%), while more than four in ten (43%) say that they are at least somewhat concerned about the growth of substance-use conditions among their workers.

And more than a quarter (27%) of large employers last year added mental-health providers – either in physical offices or virtually through telehealth – to their plan’s networks to expand access. Even with those additions, three in ten (30%) of large employers say their networks do not have enough behavioral health providers to ensure their workers have timely access to care.

Almost all large firms (96%) now cover some form of telemedicine services, either directly through their health plan (46%), through a specialized telemedicine provider (32%), or both (20%), the survey said.

In addition, more than half expect telemedicine to be “very important” in providing behavioral health services (55%) and serving enrollees in remote areas (54%). Smaller but still significant shares say telemedicine will be “very important” in providing primary care (35%) and specialty care (24%).

Additional survey findings

The following are additional findings from the survey:

• Offer rate. Nearly all (99%) large employers offer health benefits to at least some of their workers, though smaller firms are increasingly less likely to offer health benefits as they get smaller. For example, the survey said, two thirds (67%) of firms with 10 to 199 employers offer health benefits to at least some of their workers, while just 39% of firms with three to nine workers do so.
• Spousal coverage restrictions. While most employers allow a worker’s spouse to enroll in coverage even if they are offered other coverage, 16% do not allow spouses to enroll in such circumstances, and another 14% place restrictions on the spouses’ enrollment. Some (5%) charge spouses more for coverage if they have access to other coverage.

KFF conducted the annual employer survey between February and July of 2022. It included 2,188 randomly selected, non-federal, public and private firms with three or more employees who responded to the full survey. An additional 2,917 firms responded to a single question about offering coverage.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].