2023 Employer Health Benefits Survey Results

3 minute read

The Kaiser Family Foundation conducts an annual Employer Health Benefits Survey to look at employer-sponsored health trends. Here are some key points from the 2023 survey.

Health Insurance Premiums

The average 2023 premiums for employer-sponsored health insurance were $8,435 for single and $23,968 for family coverage. Premiums increased by 7% over the last year. The average premium for family coverage has risen 22% over the last five years, compared with a 27% increase in workers’ wages and 21% inflation.

High deductible health plans with savings options (HDHP/SOs) were lower with $7,753 for single and $22,344 for family. Those enrolled in preferred provider organizations (PPO) plans were high, with $8,906 for single and $25,228 for family coverage.

Worker Contribution

Like 2022 percentages, the average worker contribution towards premium was 17% for single and 29% for family coverage.

Plan Enrollment

Enrollment numbers were similar to last year’s:

• HDHP/SOs: 29% workers covered
• PPOs: 47% of workers
• Point-of-service (POS) plans: 10% of workers covered
• Health maintenance organizations (HMOs): 13% of workers covered

• Conventional (indemnity) plans: 1% of workers covered

Self-funding

Some employers have switched to self-funding their health plan over the last few years. In 2023, 65% of covered workers (18% in small organizations and 83% in large organizations) are enrolled in self-funded plans. The numbers were very similar to 2022.

Employee Cost Sharing

Most workers must pay a share of their health care costs. The average deductible for single coverage was $1,735. The average annual deductible has increased 10% over the past five years and 53% over the last decade.

Workers with an out-of-pocket maximum (OOPM) varied. For single coverage, 13% of workers had an OOPM of less than $2,000 and 21% had an OOPM of $6,001 or more.

Telemedicine

Ninety-one percent of larger employers with 50 or more workers offered telemedicine. Large employers were more likely to provide services through a specialized provider while smaller organizations used the telemedicine services through their health plan.

Health Promotion and Wellness

Many employers offer programs that help workers identify health issues and manage chronic conditions. The survey highlighted the following programs:

• Biometric screenings: 15% of small employers and 42% of large were given the opportunity to complete a biometric screening. Sixty-seven percent of large organizations used incentives or penalties to encourage workers to complete the assessment.
• Health and wellness promotion programs: 62% of small and 80% of large employers offered at least one of these types of programs: smoking cessation, behavioral or lifestyle coaching, and weight management.
• Disease management program: 36% of small and 64% of large employers offered disease management programs to improve employee health and reduce enrollees’ costs for certain chronic illnesses.

Availability of Employer-sponsored Coverage

In 2023, 53% of all employers offered some health benefits. Overall, 79% of workers are eligible for health benefits at employers that offer coverage, and 75% of eligible workers take that coverage. So, 59% of workers at organizations that offer coverage are enrolling.

Conclusion

The average health premiums increased in 2023 due to the economy. Inflation and wages are projected to moderate over the next two years. Employers should start to identify tools and resources to offset higher premiums and offer robust mental health support. Download the bulletin for more details.