Employer health insurance costs reach record highs in Oregon

The cost of health insurance provided through Oregon employers reached record levels last year, adding to the financial pressure many families already feel from rising health care costs.

In Oregon, the average annual premiums climbed to $24,688 for employees who paid for family insurance and $8,400 for employees who covered just themselves in 2024, according to a new analysis from the State Health Access Data Assistance Center at the University of Minnesota.

Both figures are the highest ever reported for the state, according to the center, which has tracked the data since 2002.

The figures reflect a broader national trend of not only more expensive health care but also employers passing on the costs to workers, industry analysts said.

About 1.8 million Oregonians, or roughly half the state population, received health insurance through their jobs, according to state figures.

Employer-sponsored health insurance is also the most common type of coverage in the country, but it’s “becoming increasingly unaffordable for employers and their employees,” said Elizabeth Lukanen, the center’s director.

“As policymakers look for solutions to curb the growing health care affordability crisis,” she said, “employer-sponsored insurance must be part of the conversation.”

A mix of factors continues to push health care costs higher, including rising hospital prices, higher costs for prescription drugs and growing demand for medical services, according to Andrea Stewart, a research fellow with the Minnesota center.

Nationally, average premiums for employer-sponsored family coverage rose to $24,540 in 2024, up more than $600 from the year before for a 2.5% increase. Premiums for individual coverage increased by more than $300, or 3.7%, reaching $8,486, according to the report.

Oregon’s increases were higher — 8.3% for family coverage and 5.3% for individual coverage — but were smaller than in many other states.

Some states saw much steeper jumps. Delaware, for example, saw a 26% year-over-year increase in family premiums, which rose from to nearly $28,000.

One reason for Oregon’s relatively affordable employer-sponsored coverage is that workers typically pay a smaller share of premiums than the national average, said Stewart.

“That means employees in Oregon are paying less of their paycheck toward premiums, while employers are covering a larger share compared to the national average,” Stewart said. “From an employee perspective, that’s a real benefit.”

But monthly premiums are only part of the picture. Deductibles — the amount people must pay out of pocket before insurance coverage begins to kick in — rose even faster.

Average deductibles increased by more than 8% in Oregon for both individual and family plans last year, according to the center’s data. The average family deductible was nearly $4,000, while the individual deductible was just under $2,000 last year.

Stewart said those higher deductibles are partly driven by a growing number of employers turning to high-deductible health plans, which typically have lower monthly premiums but expose workers to greater costs when they need care.

More than half of workers nationwide with employer-sponsored insurance are now enrolled in high-deductible plans. Oregon’s share is slightly lower, but the trend is still concerning, Stewart said.

“High-deductible plans can feel like a solution because premiums are lower,” she said. “But they carry a lot more risk. If a medical emergency happens, people can end up owing thousands of dollars they didn’t plan for.”

The growth of high-deductible plans also raises concerns about people delaying care, something Oregon health officials say is already happening.

“We do see a relationship between higher out-of-pocket costs and people foregoing care because of cost,” Stewart said.

Researchers said the new findings highlight a part of the health care affordability debate that often receives less attention than public programs like Medicare, Medicaid or coverage sold through the Affordable Care Act marketplaces.

“Because employer-sponsored insurance has been the dominant form of coverage for so long, it can feel more stable and less visible,” Stewart said. “But the costs are rising, and those increases matter for wages, household budgets and long-term affordability.”

For Oregon lawmakers who are already grappling with reining in health care costs, the new data adds to a growing body of evidence that affordability pressures extend well beyond government programs.

“Even in a state that’s doing relatively well compared to the rest of the country, health insurance costs are still going up,” Stewart said, “And for many families, that’s becoming harder to absorb.”

A recent Oregon Health Authority survey found that 15% of Oregonians, about 602,000, delayed or skipped medical care because of cost last year. About 12%, or 493,000 Oregonians, had used up all or most of their savings because of medical bills.

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