The majority of people in the United States are enrolled in health insurance their own or a family member’s employer,1 and new data show that the national average annual premium price for employer-sponsored insurance (ESI) coverage continued trending upward in 2016, although at a slow pace.
Data from the Medical Expenditure Panel Survey – Insurance Component (MEPS-IC), show that in 2016 the average total premium for single coverage through an employer was $6,101, and the average premium for employer-sponsored family coverage was $17,710.
Since 2010, single ESI premiums have grown by nearly $1,200, at an average rate of 3.9 percent per year, and family premiums have grown by more than $3,800, at an average rate of 4.5 percent per year. However, since 2012, both single and family premiums for ESI have been growing more slowly, at rates of 2.3 percent and 2.2 percent, respectively (Figures 1 & 2).
Figure 1. Average Annual ESI Premiums, 2010-2016
Figure 2. Annual Growth in ESI Premiums, 2010-2016
The slowed growth in premium prices in recent years has been offset by the growth of deductibles. In 2016, 84.5 percent of private-sector employees were enrolled in an ESI plan with a deductible, the average amount of which was $1,696. This was a 10.1 percent increase from 2015, when the average individual deductible was $1,541. Family deductibles rose 5.3 percent from 2015 to 2016, from $2,915 to $3,069. The chart below compares the cumulative growth of deductibles and premiums for single ESI coverage since 2010.
Figure 3. Cumulative Growth of Single-Coverage ESI Premiums and Deductibles, 2010-2016
ESI Premium Levels and Growth Varied Across States
The average premium for single ESI coverage in 2016 varied across states (Figure 4). For both single and family ESI coverage, Arkansas had the lowest premiums ($5,341 for single plans and $14,929 for family plans) and Alaska had the highest premiums ($7,886 for single plans and $22,490 for family plans). Premium growth also varied by state from 2015 to 2016, with growth for single ESI coverage ranging from -5.3 percent in Nevada to 8.8 percent in Georgia and growth for family coverage ranging from -7.5 percent in Nevada to 15.3 percent in Wyoming.
Figure 4. Average Premiums for Single ESI Coverage, 2016
ESI Premium Increases in a Few States Drove National Premium Increases in 2016
In total, only five states (Georgia, New Mexico, Florida, Minnesota, and Hawaii) had statistically significant increases in premiums for single ESI coverage between 2015 and 2016, and only four states had significant increases in premiums for family ESI coverage during this time (Wyoming, Florida, Maine, and Michigan). No state reported statistically significant decreases in premiums for single or family ESI coverage from 2015 to 2016.
| Figure 5. States with Significant Growth in ESI Premiums, 2015-2016 | |||||||
|---|---|---|---|---|---|---|---|
| Single ESI Premiums | |||||||
| State | 2015 Premiums | 2016 Premiums | 2015 to 2016 Increase | ||||
| Georgia | $5,565 | $6,055 | 8.8% | ||||
| New Mexico | $5,759 | $6,240 | 8.4% | ||||
| Florida | $5,839 | $6,260 | 7.2% | ||||
| Minnesota | $5,651 | $6,030 | 6.7% | ||||
| Hawaii | $5,522 | $5,863 | 6.2% | ||||
| United States | $5,963 | $6,101 | 2.3% | ||||
| Family ESI Premiums | |||||||
| State | 2015 Premiums | 2016 Premiums | 2015 to 2016 Increase | ||||
| Wyoming | $17,015 | $19,617 | 15.3% | ||||
| Florida | $16,009 | $17,989 | 12.4% | ||||
| Maine | $16,117 | $17,987 | 11.6% | ||||
| Michigan | $15,628 | $17,113 | 9.5% | ||||
| United States | $17,322 | $17,710 | 2.2% | ||||
Explore the Data: State Health Compare
SHADAC’s State Health Compare has been updated to include 2016 MEPS data. Visit State Health Compare to explore national and state-level estimates for the years 2002 to 2016 for the following indicators:
- Workers in establishments that offer coverage
- Average annual ESI premium
- Employee contributions to premiums
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Stay Tuned
We’ll be posting updated state fact sheets that reflect the new 2016 MEPS-IC data.
1 Barnett, J.C., & Vornovitsky, M. September 13, 2016. “Health Insurance Coverage in the United States: 2015.” Current Population Reports. Washington, DC: U.S. Census Bureau. Available at http://www.census.gov/content/dam/Census/library/publications/2016/demo/p60-257.pdf