Health insurance premiums, which largely remained unchanged this year compared to 2021, might rise significantly in 2023 due to inflation, according to a survey by the Kaiser Family Foundation (KFF).
Annual family premiums for employer-sponsored health insurance are calculated to average $22,463 in 2022, which is just over a 1 percent increase from last year’s $22,221, according to a
press release on Oct. 27. Workers were found to be contributing an average of $6,106 per year toward the cost of family premiums, with the rest being paid by employers. According to KFF president and CEO Drew Altman, a sharp rise in premiums might be incoming.
“Employers are already concerned about what they pay for health premiums, but this could be the calm before the storm, as recent inflation suggests that larger increases are imminent,” he said, according to the release.
“Given the tight labor market and rising wages, it will be tough for employers to shift costs onto workers when costs spike.”
KFF called the modest change in premiums this year “unusual,” since the 1 percent rise is less than the 8 percent increase in inflation or the 6.7 percent rise in workers’ wages during the same period.
This is due to the fact that this year’s employer costs for health insurance were set last year before inflation became a major issue.
Though average premiums for family coverage have mostly remained flat over the past year, it is up by 43 percent since 2012, far outstripping the 25 percent rise in inflation and beating the 38 percent increase in wages during this period.
Compromising Health Care, Rising Costs
Inflation is now weighing down on American citizens so much that it is affecting the quality of health care they access.A
study published in the Annals of Internal Medicine on Oct. 18, for example, estimated that more than a million American adults who have diabetes might have rationed or even skipped doses of insulin in the past year due to rising costs.
Since January this year, the annual inflation of medical care services has risen from 2.7 to 6.5 percent as of September, according to
data from the U.S. Bureau of Labor Statistics (BLS). The inflation of medical care commodities rose from 1.4 to 3.7 percent during this period.
An analysis by McKinsey
estimates that U.S. health care costs are $590 billion more than the already $5.8 trillion projected for 2027. Inflation alone is expected to account for $370 billion of this additional cost.
In the next three years, the United States is projected to see a shortage of more than 50,000 physicians and 200,000 registered nurses.
“In addition to fueling persistent inflation, this clinical staff shortage is likely to create challenges in health care access and potentially exacerbate health inequities,” the McKinsey analysis warned.
