Work health insurance costs soared this year

The cost of health coverage through work jumped this year, in part because of inflation, according to a survey of U.S. employers.

Premiums for family and single plans climbed 7% after barely rising in 2022, according to a report Wednesday by KFF, a nonprofit that researches health care issues. This fall, companies begin their annual coverage enrollment window for 2024, and health care experts say another price hike could be coming.

Employer-sponsored health insurance is the most common form of coverage in the U.S. KFF says almost 153 million Americans have it.

Companies generally pay most of the premium — 70% or more in many cases. That can soften the impact of price hikes on employees. Coverage costs are taken out of paychecks before taxes, which also helps mitigate the financial pinch workers may feel, noted Paul Fronstin, director of health benefits research for the Employee Benefit Research Institute, who was not involved in the KFF study.