An annual survey by the Kaiser Family Foundation has revealed that insurance coverage for a family now tops $20,000. The record-high number is pushing some to rethink having insurance altogether.
The report utilized responses from over 2,000 U.S. workers who receive insurance through their jobs. At $20,000, the cost is hard to stomach.
“It’s as much as buying a basic economy car but buying it every year,” says Kaiser CEO Drew Altman.
The survey also adds that even though the employers cover most of the cost, workers are still contributing around $6,000 to the family plan. That just covers their share of upfront premiums and doesn’t include co-payments, deductibles, and other forms of cost-sharing once they need care.
The costs are rising so high, many have changed to cheaper plans or even avoided getting insurance at all. Over the past decade, average deductibles for a single person have more than doubled. In 2009, it was $533 and now in 2019, it’s as high as $1,396.
The Federal Reserve published a report recently that said 40% of people will have trouble paying for an unexpected $400 expense without borrowing or selling an asset. The issue has led to some businesses curbing the cost their employees pay.
According to a survey by the National Business Group on Health, by 2020 fewer businesses will require workers to link savings accounts with high-deductible coverage. They say 25% of big companies will still use “consumer-directed health plans” by then.