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KFF 2024 Employer Health Benefits Survey

Oct 28, 2024, 3 Minute Read

In 2024, the average single premium increased by 6%, and the average family premium increased by 7% for employer-sponsored coverage. Over the last five years, the average premium for family coverage has increased 24%, compared to a 28% increase in workers’ wages and an inflation rate of 23%.

The KFF 2024 Employer Health Benefits Survey provides a comprehensive analysis of trends in employer-sponsored health coverage. This year’s report covers premium trends, employee contributions, cost-sharing provisions, wellness programs, and new questions on provider networks, abortion coverage, family building benefits, coverage for GLP-1 agonists (weight loss drugs), and programs for lower-wage workers. The 2024 survey was conducted through 2,142 interviews with non-federal public and private firms with three or more workers.

Key Findings

• Premiums and Employer Contributions
  • The average annual premiums for employer-sponsored health insurance in 2024 are $8,951 for single coverage and $25,572 for family coverage.
  • The average premiums for covered workers in high-deductible health plans with a savings option (HDHP/SO) were lower than the overall average premiums for both single coverage ($8,275) and family coverage ($24,196).
  • Most covered workers contribute to the cost of the premium. On average, covered workers contribute 16% of the premium for single coverage and 25% of the premium for family coverage, which is lower than the contribution percentages in 2023.
  • 37% of covered workers at small firms are enrolled in a plan where the employer pays the entire premium for single coverage. 26% of covered workers at small firms are in a plan where they must contribute more than half of the premium for family coverage.
  • Nearly a third (32%) of workers at small firms have deductibles of $2,000 or more for single coverage, which is similar to last year’s percentage (31%).
  • PPOs remain the most common plan type. In 2024, 48% of covered workers are enrolled in a PPO, 27% in a HDHP/SO, 13% in an HMO, 11% in a POS plan, and 1% in a conventional (also known as indemnity) plan.
  • In 2024, 54% of all firms offered some health benefits, similar to the percentage last year (53%). Large firms (200 or more workers) are much more likely than small firms to offer health benefits to at least some of their workers (98% vs. 53%).

Additional Findings

• Health and Wellness Programs
  • Many small businesses are expanding health and wellness programs to enhance employee well-being and engagement. These initiatives often focus on physical, mental, and preventive health measures, though the scope and investment in these programs tend to be smaller compared to large firms.
  • 54% of small firms and 79% of large firms offer a program in at least one of these areas: smoking cessation, weight management, and behavioral or lifestyle coaching.

• Telemedicine
  • Telemedicine has become a crucial benefit for small employers, providing cost-effective and convenient access to healthcare. A growing number of small businesses are adding telemedicine options to their plans, allowing employees to consult with healthcare providers remotely, often with reduced or no copays, which helps manage rising healthcare costs while improving access.
• Tiered and Narrow Networks
  • Small businesses are increasingly adopting tiered and narrow network health plans to manage costs. These plans limit the choice of healthcare providers in exchange for lower premiums, offering a more affordable option for both employers and employees. Narrow networks focus on a select group of healthcare providers, while tiered networks offer varying levels of coverage based on the provider chosen.
• GLP-1 Drug Coverage for Weight Loss
  • Coverage for costly GLP-1 drugs, like Wegovy, remains limited among small employers.
  • Only 18% of large firms (200+ workers) cover these drugs.
  • 53% of those covering the drugs impose conditions, such as dietitian consultations or participation in weight-loss programs.

Check out the KFF 2024 Employer Health Benefits Survey summary and news release to stay up to date on the latest employer-sponsored coverage trends and guide your groups through the evolving health care marketplace. Contact us today to develop tailored benefits solutions that address your clients’ needs.

KFF 2024 Employer Health Benefits Survey

Questions?
Contact The Answer Team at 800.696.4543 or info@claremontcompanies.com.

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