2013 Employer Health Benefits Survey
Section One: Cost of Health Insurance
The average annual premiums in 2013 are $5,884 for single coverage and $16,351 for family coverage. Average premiums increased 5% for single coverage and 4% for family coverage in the last year. Family premiums have increased 80% since 2003 and have more than doubled since 2002. Average family premiums for workers in small firms (3-199 workers) ($15,581) are significantly lower than average family premiums for workers in larger firms (200 or more workers) ($16,715).
Premium Costs for Single and Family Coverage
- The average premium for single coverage in 2013 is $490 per month or $5,884 per year (Exhibit 1.1). The average premium for family coverage is $1,363 per month or $16,351 per year (Exhibit 1.1).
- The average annual premiums for covered workers in HDHP/SOs are lower for single ($5,306) and family coverage ($15,227) than the overall average premiums for covered workers. Average annual premiums for all other plan types, including PPO plans, HMOs, and POS plans, are similar to the overall average premiums for covered workers (Exhibit 1.1).
- The average premium for family coverage for covered workers in small firms (3-199 workers) ($15,581) is lower than the average premium for covered workers in large firms (200 or more workers) ($16,715) (Exhibit 1.2). The average single premium for covered workers in small firms (3-199 workers) and larger firms do not differ significantly.
- Average single and family premiums for covered workers are higher in the Northeast ($6,117 and $17,411) and lower in the Midwest ($5,613 and $15,724) than the average premiums for covered workers in all other regions (Exhibit 1.3). Covered workers in the West also face higher premiums for single coverage ($6,140).
- Covered workers in firms where 35% or more of the workers are age 26 or younger have lower average single and family premiums ($5,166 and $14,645) than covered workers in firms where a lower percentage of workers are age 26 or younger ($5,929 and $16,457). Covered workers in firms where 35% or more of the workers are age 50 or older have higher average single and family premiums ($6,263 and $17,424) than covered workers in firms where a lower percentage of workers are age 50 or older ($5,622 and $15,612) (Exhibit 1.5) and (Exhibit 1.6).
- Covered workers in firms with a large percentage of lower-wage workers (at least 35% of workers earn $23,000 per year or less) have lower average single and family premiums ($5,450 and $15,225) than covered workers in firms with a smaller percentage of lower-wage workers ($5,922 and $16,450). Covered worker in firms with a large percentage of higher-wage workers (at least 35% of workers earn $56,000 per year or more) have higher average single and family premiums ($6,025 and $16,989) than covered workers in firms with a smaller percentage of higher-wage workers ($5,760 and $15,789) (Exhibit 1.5).
- There is considerable variation in premiums for both single and family coverage.
- Twenty-one percent of covered workers are employed by firms that have a single premium at least 20% higher than the average single premium, while 22% of covered workers are in firms that have a single premium less than 80% of the average single premium (Exhibit 1.7).
- For family coverage, 21% of covered workers are employed in a firm that has a family premium at least 20% higher than the average family premium, and another 21% of covered workers are in firms that have a family premium less than 80% of the average family premium (Exhibit 1.7) and (Exhibit 1.8).
Premium Changes Over Time
- The average annual single premium ($5,884) in 2013 is 5% higher than the average annual single premium in 2012 ($5,615), and the average annual family premium ($16,351) is 4% higher than the average annual family premium last year ($15,745) (Exhibit 1.11).
- The $16,351 average annual family premium in 2013 is 29% higher than the average family premium in 2008 and 80% higher than the average family premium in 2003 (Exhibit 1.11).
- Premiums for both small and large firms have seen a similar increase since 2008 (29%). For small firms (3 to 199 workers), the average family premium rose from $12,091 in 2008 to $15,581 in 2013. For large firms (200 or more workers), the average family premium rose from $12,973 in 2008 to $16,715 in 2013 (Exhibit 1.13).
- Since 2003, premiums for small firms (3 to 199 workers) have increased 74% ($15,581 in 2013 vs. $8,946 in 2003). The premiums for large firms have increased 83% ($16,715 in 2013 vs. $9,127 in 2003) (Exhibit 1.13).
- For large firms (200 or more workers), the average family premium for covered workers in firms that are fully insured has grown at a similar rate to premiums for workers in fully or partially self-funded firms from 2008 to 2013 (28% in fully insured firms vs. 29% in self-funded firms) and from 2003 to 2013 (84% in fully insured firms vs. 83% in self-funded firms) (Exhibit 1.14).
Average Monthly and Annual Premiums for Covered Workers, Single and Family Coverage, by Plan Type, 2013
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Firm Size, 2013
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2013
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Industry, 2013
Average Annual Premiums for Covered Workers with Single Coverage, by Firm Characteristics, 2013
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Characteristics, 2013
Distribution of Annual Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2013
Distribution of Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2013
Distribution of Annual Premiums for Covered Workers with Single Coverage, 2013
Distribution of Annual Premiums for Covered Workers with Family Coverage, 2013
Average Annual Premiums for Single and Family Coverage, 1999-2013
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Size, 1999-2013
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Size, 1999-2013
Among Workers in Large Firms (200 or More Workers), Average Annual Health Insurance Premiums for Family Coverage, by Funding Arrangement, 1999-2013
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Exhibit 1.1
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Exhibit 1.2
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Exhibit 1.3
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Exhibit 1.5
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Exhibit 1.6
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Exhibit 1.7
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Exhibit 1.8
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Exhibit 1.11
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Exhibit 1.13
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