Employee-Paid Premiums are Rising
Premiums continue to rise rapidly for employer-sponsored insurance, creating challenges for both employees and employers. Even when employers contribute the same percentage to their employees’ health insurance premiums year after year, rising premiums mean that workers’ paychecks continue to shrink. A recent survey found that between 2006 and 2016, the average cost of employer-sponsored family coverage rose from around $11,500 a year to more than $18,000 a year, a 58 percent increase. [Figure 27]. At the same time, the average employee’s share of their premium rose even faster, from nearly $3,000 to more than $5,000, an increase of 78 percent. The rapid rise in health care costs helps explain why more than 50 percent of Americans reported not receiving any wage growth in 2017.
The Case for Medicare for All.” Public Citizen, February 24th, 2019, pp. 40-42.