Health insurance costs: Premiums for family coverage at work tops $22,000 a year

Meanwhile, the average deductible is roughly $1,669 among workers subject to an annual deductible, which must be met before insurance kicks in. That’s about the same as last year, but up 68% over the past 10 years.

Employers realize their plans aren’t very affordable, especially for lower-paid workers, said Gary Claxton, senior vice president at Kaiser. But they also don’t believe they have a way of offering good benefits at a substantially lower price.

“They do know these plans are expensive and hard for their employees to use,” Claxton said. “Given the cost of health care in this country, it’s pretty difficult to fashion good benefits at a lower cost for employees, particularly those at a lower and moderate wage.”

Beefing up mental health benefits

Firms told Kaiser that they’ve seen an increase in employees seeking mental health and substance abuse services since the outbreak began. Companies with at least 1,000 workers saw the biggest spike: a 38% jump.

This trend has led nearly 40% of companies to make changes, including expanding ways to get assistance, such as through telemedicine; developing new resources, including employee assistance programs; or adding more in-network providers.

Next year will mark the first time that a majority of employers will have an anti-stigma campaign, the group’s survey found. Efforts include promoting more open discussion about mental health and the challenges employees are facing.

Benefits will cost more for 2022

Many workers are currently selecting polices for 2022 or have recently done so during their companies’ open enrollment periods.

Employers project that their health benefit costs will rise more than 5% for next year, according to a recent survey by Willis Towers Watson, an advisory firm. Employee contributions, however, will tick up less than 2%.

Some 86% of companies said a key priority over the next two years is to achieve affordable costs for their workers, especially those at the bottom of the wage scale. More are tying premiums to pay so that lower-income employees have smaller monthly tabs, said Jeff Levin-Scherz, population health leader at Willis Towers Watson.

Nearly a third of companies are planning or considering offering a narrower network of providers to hold down costs.

“Employers are reluctant to pass more cost sharing onto employees because it’s been a bad time, and they know that, and they are looking to be sure they can recruit the people they need,” he said.