Think your health insurance is expensive? Well, think again. It costs a fortune. According to the new KFF study of health insurance costs for families this year, the number has risen to $23,968. A typical employee pays $6,575 of that, which is $575 a month.
The insurance cost rose 7% this year, much higher than usual. This number affects a lot of people, as many as 153 million “non-elderly” people, the research shows. Additionally, the number should be compared to inflation of 5.8% and wage increases of 5.2%.
Recently, the effect has been mixed. “Over the last five years, the average premium for family coverage has increased by 22% compared to an 27% increase in workers’ wages and 21% inflation,” the authors wrote.
Bloomberg points out that the increase was the highest since 2011. Inflation was among the reasons for the jump.
According to the U.S. Census, the median household income in the U.S. is about $70,000. After taxes, for most people, that drops closer to $50,000, or $4,200 a month. Insurance plans also carry deductibles that average above $1,000. Drop that on top of housing, home insurance, transportation, clothing, and, in some cases, school. To say nothing is left is an understatement.
And there is no way out. The federal government has taken several stabs at bringing down the cost of health care, and each one has been thwarted. Most insurers are for-profit companies or mutuals. It is the job of their management to press gross revenue as high as possible. (These are the most hated insurance companies in America, ranked.)
The KFF study comes out every year. The results will not be much different for 2024. The increase may drop to 5% or 6%. Even at those levels, the consumer’s ability to pay continues to diminish. (These are health conditions with soaring medical costs.)
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