Cost of Healthcare – Yearly Premium Changes

I broke Section 1 into two parts. The first part discussed the various types of plans available for single employees and employees needing family coverage. This part of Section 1 discusses premiums for sigle employees and employees with families. There is a match according to salary increases, inflation growth, and earnings. As you can see the cost growth for family coverage outstripped the cost growth for single employees.

Premiums appear to be similar for both small and large firms. Funding also appears to be similar.

The average annual health insurance premiums in 2024 are $8,951 for single coverage and $25,572 for family coverage. An average single coverage premium increased 6% in 2024 while the average family premium increased 7%. The average family premium has increased 24% since 2019 and 52% since 2014.

Section 1: Cost of Health Insurance – 10480, KFF

Premium Changes Over Time

• The average premiums for covered workers for single and family coverage increased 6% and 7% respectively from last year [Figure 1.12].
• The average premium for single coverage has grown 25% in the past five years [Figure 1.12].

• The $25,572 average family premium in 2024 is 24% higher than the average family premium in 2019 and 52% higher than the average family premium in 2014. The 24% family premium growth in the past five years is similar to the 22% growth between 2014 and 2019 [Figure 1.15].

• The average family premiums for covered workers at small firms and at large firms have grown at similar rates since 2019 (24% at small firms and 24% at large firms). For small firms, the average family premium rose from $20,236 in 2019 to $25,167 in 2024. For large firms, the average family premium rose from $20,717 in 2019 to $25,719 in 2024 [Figure 1.13].

• The average family premiums have grown at similar rates since 2014 for covered workers at small firms and at large firms (59% at small firms and 49% at large firms). At small firms, the average family premium rose from $15,849 in 2014 to $25,167 in 2024. In large firms, the average family premium rose from $17,265 in 2014 to $25,719 in 2024 [Figure 1.13].

• Over the past five years, the average family premium for covered workers at large 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 plan (26% for fully insured plans and 24% for self-funded firms) [Figure 1.14].

• The average family premium grew 7% in 2024 while the rate of inflation was (3.2%). Over the last 5 years, family premiums grew 24%, similar to the rate of inflation during this period (23%). Over the last ten years, the growth in the average premium for family coverage far outpaced inflation (52% vs. 32%) [Figure 1.15].

• The average family premium grew 7% in 2024 while wages grew 4.5%. Over the last 5 years, family premiums grew 24%, similar to the 28% growth in wages. Over the last ten years, the average family premium and average wages grew at roughly comparable rates (52% vs. 45%) [Figure 1.15].

To wit: “For 2026, across 312 insurers participating in the ACA Marketplaces from the 50 states and the District of Columbia, an analysis shows a median proposed premium increase of 18%, which is about 11 percentage points higher than last year 2025. This will be the largest rate change insurers have requested since 2018, the last time that policy uncertainty contributed to sharp premium increases. On average, ACA Marketplace insurers are raising premiums by about 20% in 2026.” 

This information is fairly recent. I am not going to touch till some time passes. In the meantime, start saving. You can read it here: “How much and why ACA Marketplace premiums are going up in 2026,” Peterson-KFF Health System Tracker

Earlier Part of Section1: Cost of Healthcare Insurance by Commercial and Government, Angry Bear