Employer-sponsored insurance costs outpaced inflation in 2024

Employer-sponsored health insurance premiums spiked $600 for families between 2023 and 2024, outpacing the rate of inflation and causing a cost crunch for families, according to a new analysis from the State Health Access Data Assistance Center in partnership with the Robert Wood Johnson Foundation.

In 2024, the most recent year for which SHADAC and RWJF had data, annual premiums for employer-sponsored coverage totaled $24,540 for families. For individuals, annual employer-sponsored healthcare premium costs increased to $8,486 in 2024, up more than $300 from 2023.

These findings are notable, as more consumers feel the pinch of rising healthcare costs. Employer-sponsored health plans are the most common type of insurance, the researchers remarked, covering 54.6% of the U.S. population.

"Employer-sponsored insurance remains the backbone of health coverage in the United States, but it is becoming increasingly unaffordable for employers and their employees," Elizabeth Lukanen, director at SHADAC, said in a press release received via email. "As policymakers look for solutions to curb the growing healthcare affordability crisis, addressing the decades-long trend of increasing costs in employer-sponsored insurance must be part of the conversation."

But according to the report, the cost of that insurance is increasingly high, especially as growth in premium costs starts to outpace inflation in some regions. The states with the most pronounced premium hikes include Delaware, Alabama and Rhode Island.

The data did show that employee contributions -- the amount of each employee's paycheck that goes toward paying down insurance premiums -- held steady between 2023 and 2024. Single contributions held around 20%, while family contributions were around 30%. However, because contributions represent a percentage, not a flat rate, of an employee's paycheck, employees are also seeing their costs rise.

According to the data, employees are taking steps to mitigate those costs, namely by selecting high-deductible plans with lower premiums. In 2024, 51.7% of private-sector workers opted for these plans. In 22 states, more than 60% of folks with employer-sponsored health insurance have a high-deductible plan.

This comes as the typical deductible for both individual and family coverage spiked 8% between 2023 and 2024.

"Employer-provided health coverage is not immune from the healthcare affordability crisis that is tightening its grip throughout America," Katherine Hempstead, senior policy adviser at the Robert Wood Johnson Foundation, said in the press release. "The trend of moving to high-deductible plans to shield companies and individuals from large monthly premium increases is understandable, but it means greater financial risk down the road in the event of a medical emergency. It's a gamble no one should have to take."

These trends are slated to continue, as the U.S. confronts persistent issues with health insurance premium costs. Earlier this year, a KFF survey revealed that annual employer-sponsored health insurance premiums for a family of four rose 6% to $27,000 in 2025. Those premium costs are expected to grow in 2026, according to multiple reports.

Sara Heath has reported news related to patient engagement and health equity since 2015.