2022 Employer Health Benefits Survey

Published: Oct 27, 2022

Section 1: Cost of Health Insurance

The average annual premiums in 2022 are $7,911 for single coverage and $22,463 for family coverage. These amounts are similar to the premiums in 2021 ($7,739 for single coverage and $22,221 for family coverage). The average family premium has increased 20% since 2017 and 43% since 2012.

This graphing tool allows users to look at changes in premiums and worker contributions for covered workers at different types of firms over time: https://www.kff.org/interactive/premiums-and-worker-contributions/

PREMIUMS FOR SINGLE AND FAMILY COVERAGE

The average premium for single coverage in 2022 is $7,911 per year. The average premium for family coverage is $22,463 per year [Figure 1.1].
The average annual premium for single coverage for covered workers in small firms ($8,012) is similar to the average premium for covered workers in large firms ($7,873). The average annual premium for family coverage for covered workers in small firms ($22,186) is similar to the average premium for covered workers in large firms ($22,564). [Figure 1.3].
The average annual premiums for covered workers in HDHP/SOs are lower than the average premiums for coverage overall for both single coverage ($7,288 vs. $7,911) and family coverage ($21,136 vs. $22,463). The average premiums for covered workers in PPOs are higher than the overall average premiums for both single coverage ($8,272 vs. $7,911) and family coverage ($23,426 vs. $22,463) [Figure 1.1].
The average premiums for covered workers with either single or family coverage are relatively higher in the Northeast and relatively lower in the South [Figure 1.4].
The average premium for family coverage for covered workers in the the Transportation/Communications/Utilities categories is higher than the average single premium for covered workers in other industries [Figure 1.5].
The average premiums for covered workers in firms with a relatively large share of lower-wage workers (where at least 35% of the workers earn $30,000 annually or less) are lower than the average premium for covered workers in firms with a smaller share of lower-wage workers for both single coverage ($7,267 vs. $7,973) and family coverage ($20,211 vs. $22,681) [Figure 1.6] and [Figure 1.7].
The average annual premium for single coverage for covered workers in private for-profit firms is lower than the average annual premium for covered workers in other firms. The average annual premium for covered workers in private not-for-profit firms is higher than average annual premium for covered workers in other firms [Figure 1.6] and [Figure 1.7].
Average premiums vary with the distribution of ages of workers within firms.
- The average annual premiums for covered workers in firms with a relatively large share of younger workers (where at least 35% of the workers are age 26 or younger) are lower than the average premium for covered workers in firms with a smaller share of younger workers for single coverage ($7,341 vs. $7,978) [Figure 1.6] and [Figure 1.7].
- The average annual premiums for covered workers in firms with a relatively large share of older workers (where at least 35% of the workers are age 50 or older) are higher than the average premium for covered workers in firms with a smaller share of older workers for both single coverage ($8,252 vs. $7,579) and family coverage ($23,197 vs. $21,748). [Figure 1.6] and [Figure 1.7].

Figure 1.1: Average Annual Premiums for Covered Workers, Single and Family Coverage, by Plan Type, 2022

Figure 1.2: Average Annual Premiums for Covered Workers, Single and Family Coverage, by Firm Size, 2022

Figure 1.3: Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Firm Size, 2022

Figure 1.4: Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2022

Figure 1.5: Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Industry, 2022

Figure 1.6: Average Annual Premiums for Covered Workers With Single Coverage, by Firm Characteristics, 2022

Figure 1.7: Average Annual Premiums for Covered Workers With Family Coverage, by Firm Characteristics, 2022

Figure 1.8: Average Annual Premiums for Covered Workers, by Firm Characteristics and Firm Size, 2022

PREMIUM DISTRIBUTION

There remains considerable variation in premiums for both single and family coverage.
- Eighteen percent of covered workers are employed in a firm with a single premium at least 20% higher than the average single premium, while 23% of covered workers are in firms with a single premium less than 80% of the average single premium [Figure 1.9].
- For family coverage, 19% of covered workers are employed in a firm with a family premium at least 20% higher than the average family premium, while 22% of covered workers are in firms with a family premium less than 80% of the average family premium [Figure 1.9].
Thirteen percent of covered workers are in a firm with an average annual premium of at least $10,000 for single coverage [Figure 1.10]. Eleven percent of covered workers are in a firm with an average annual premium of at least $29,000 for family coverage [Figure 1.11].

Figure 1.9: Distribution of Annual Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2022

Figure 1.10: Distribution of Annual Premiums for Covered Workers With Single Coverage, 2022

Figure 1.11: Distribution of Annual Premiums for Covered Workers With Family Coverage, 2022

PREMIUM CHANGES OVER TIME

The average premiums for single and family coverage are similar to the premiums from last year [Figure 1.12].
- The average premium for single coverage has grown 18% since 2017, similar to the growth in the average premium for family coverage (20%) over the same period [Figure 1.12].
- The $22,463 average family premium in 2022 is 20% higher than the average family premium in 2017 and 43% higher than the average family premium in 2012. The 20% family premium growth in the past five years is similar to the 19% growth between 2012 and 2017 [Figure 1.15].
- The average family premium has grown faster since 2017 for covered workers in small firms as compared to covered workers in large firms (26% for small firms and 17% for large firms). For small firms, the average family premium rose from $17,615 in 2017 to $22,186 in 2022. For large firms, the average family premium rose from $19,235 in 2017 to $22,564 in 2022 [Figure 1.13].
- The average family premium has grown at a similar rate since 2012 for covered workers in small firms as compared to covered workers in large firms (45% in small firms and 41% in large firms). In small firms, the average family premium rose from $15,253 in 2012 to $22,186 in 2022. In large firms, the average family premium rose from $15,980 in 2012 to $22,564 in 2022 [Figures 1.13].
For covered workers in large firms, over the past five years, the average family premium in firms that are fully insured has grown at a similar rate to the average family premium for covered workers in fully or partially self-funded firms (13% for fully insured plans and 18% for self-funded firms) [Figure 1.14].
The average family premium in 2022 is similar to the average family premium in 2021, which compares to a substantial jump in inflation between the first three months of 2021 and the same period in 2022, 8%. This significant jump in inflation brings the growth in the average premium for family coverage over the last 5 years much closer to the rate of inflation over the same period (20% vs. 17%). The growth in the average premium for family coverage still outpaces the rate of inflation over the last ten years (43% vs. 25%) [Figure 1.15].