2016 Employer Health Benefits Survey
Section One: Cost of Health Insurance
The average annual premiums in 2016 are $6,435 for single coverage and $18,142 for family coverage. The average family premiums increased approximately 3% since 2015. The average family premium has increased 58% since 2006 and 20% since 2011. The average family premium for covered workers in small firms (3-199 workers) ($17,546) is significantly lower than average family premiums for workers in large firms (200 or more workers) ($18,395).
Premium Costs for Single and Family Coverage
- The average premium for single coverage in 2016 is $536 per month, or $6,435 per year. The average premium for family coverage is $1,512 per month or $18,142 per year (Exhibit 1.1).
- The average annual premiums for covered workers in HDHP/SOs are lower for single ($5,762) and family coverage ($16,737) than the overall average premiums for covered workers. The average premiums for covered workers enrolled in PPO plans are higher for single ($6,800) and family coverage ($19,003) than the overall plan average (Exhibit 1.1).
- The average annual premium for family coverage for covered workers in small firms ($17,546) is lower than the average premium for covered workers in large firms ($18,395) (Exhibit 1.2).
- The average family premium for covered workers is lower in the South ($17,429) than the average premium for covered workers in all other regions (Exhibit 1.3).
- The average single premium for covered workers employed in the retail industry ($5,807) is lower than the average premium for covered workers in all other industries. The average single premium for covered workers employed in the state/local government industry ($7,218) is higher than the average premium for covered workers in all other industries (Exhibit 1.4).
- The average family premium for covered workers employed in the retail industry ($16,321) is lower than the average premium for covered workers in all other industries (Exhibit 1.4).
- The average single premium for covered workers in firms with a larger share of younger workers (where 35% or more of the workers are age 26 or younger) is lower than the average premium for covered workers in firms with a lower share of younger workers ($6,047 vs. $6,472) (Exhibit 1.5).
- The average family premium for covered workers in firms with some union workers ($18,906) is higher than the average premium for covered workers in firms without union workers ($17,748) (Exhibit 1.6).
The Distribution of Premiums
- There is considerable variation in premiums for both single and family coverage.
- Eighteen percent of covered workers are employed in a firms with a single premium at least 20% higher than the average single premium, while 19% of covered workers are in firms with a single premium less than 80% of the average single premium (Exhibit 1.7) and (Exhibit 1.8).
- For family coverage, 17% of covered workers are employed in a firm with a family premium at least 20% higher than the average family premium, while 19% of covered workers are in firms with a family premium less than 80% of the average family premium(Exhibit 1.7) and (Exhibit 1.8).
- Seven percent of covered workers are in a firm with a premium of $9,000 a year or more for single coverage (Exhibit 1.9). Nine percent of covered workers are in a firm with a premium of $24,000 a year or more for family coverage (Exhibit 1.10).
Premium Changes Over Time
- The 2016 average family coverage premiums are three percent higher than the 2015 average premiums (Exhibit 1.11).
- The $18,142 average family premium in 2016 is 20% higher than the average family premium in 2011 and 58% higher than the average family premium in 2006 (Exhibit 1.11) and (Exhibit 1.16). The 20% family premium growth in the last five years is smaller than the 31% growth between 2006 and 2011, or the 63% premium growth between 2001 and 2006 (Exhibit 1.16).
- The average family premiums for both small and large firms have seen a similar increase since 2011 (24% for small and 19% for large). For small firms (3 to 199 workers), the average family premium rose from $14,098 in 2011 to $17,546 in 2016. For large firms (200 or more workers), the average family premium rose from $15,520 in 2011 to $18,395 in 2016 (Exhibit 1.13).
- The rates of growth for the average family premiums in small firms and large firms since 2006 also have been similar. Since 2006, the average family premium for small firms increased 55% ($17,546 in 2016 vs. $11,306 in 2006), and the average family premium for large firms increased 59% ($18,395 in 2016 vs. $11,575 in 2006) (Exhibit 1.13).
- For covered workers in large firms, the average family premium in firms that are fully insured has grown between 2011 to 2016 at a similar rate to premiums for workers in fully or partially self-funded firms (21% for fully insured plans and 18% for self-funded firms) (Exhibit 1.17).
Average Monthly and Annual Premiums for Covered Workers, Single and Family Coverage, by Plan Type, 2016
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Firm Size, 2016
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2016
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Industry, 2016
Average Annual Premiums for Covered Workers with Single Coverage, by Firm Characteristics and Firm Size, 2016
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Characteristics and Firm Size, 2016
Distribution of Annual Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2016
Distribution of Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2016
Distribution of Annual Premiums for Covered Workers with Single Coverage, 2016
Distribution of Annual Premiums for Covered Workers with Family Coverage, 2016
Average Annual Premiums for Single and Family Coverage, 1999-2016
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Size, 1999-2016
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Size, 1999-2016
Average Annual Premiums for Covered Workers with Single Coverage, by Firm Wage Level, 1999-2016
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Wage Level, 1999-2016
Total Premium Increases for Covered Workers with Family Coverage, 2001-2016
Among Workers in Large Firms (200 or More Workers), Average Annual Health Insurance Premiums for Family Coverage, by Funding Arrangement, 1999-2016
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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 1.4
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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 1.9
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Exhibit 1.10
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Exhibit 1.11
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Exhibit 1.16
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Exhibit 1.13
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