Employer Plan Premiums Hold Steady in 2022, but Experts Predict Higher Costs, Narrower Networks in 2023

The average premium for an average employer-sponsored plan didn't go up much in 2022, according to the Kaiser Family Foundation's annual survey of plan sponsors. Managed care insiders tell AIS Health, a division of MMIT, that even though prices are nearly certain to go up for plan sponsors in 2023, the era of cost-shifting to employees may be drawing to a close as firms struggle to retain low-wage workers who are feeling the pressure of inflation. 

KFF found that the average annual premium for employer-sponsored health coverage is $7,911 for single coverage and $22,463 for family coverage this year, which are “similar to the average premiums in 2021.” While those costs remained stable between 2021 and 2022, the average premium for family coverage has increased 20% over the last five years and 43% over the last 10 years. The survey also found that premiums for workers at small and large firms are similar (KFF defines large firms as having a workforce of at least 200 people).