Employees’ Health Costs Up 134 Percent in Decade

What's Hot


How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

8 Creative Ways to Clear ClutterAround The House

Study: People Who Curse Are More HonestFamily

This Free Software Brings Old Laptops Back to LifeMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 3 Golden Rules of Lending to Friends and FamilyBorrow

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

Porta-Potties for Presidential Inauguration Cause a StinkFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

7 New Year’s Resolutions to Make With Your KidsFamily

5 New Year’s Resolutions That Will Pay Off 10 Years From NowCollege

10 Tasty Alcohol-Free Drinks That Adults Will LoveFamily

10 Simple Money Moves to Make Before the New YearFamily

Could Your Pet Benefit From Marijuana-Laced Treats?Family

Employees are contributing an average of nearly $5,000 annually to their health care costs. Find out where expenses are headed in 2016.

The average amount that employees contribute to their health care has increased by more 134 percent over the past 10 years — and is projected to increase again next year.

That’s according to Aon Hewitt, which analyzed data for more than 600 large U.S. employers representing 11.7 million participants, more than 1,200 health plans and nearly $59 billion in 2015 health care spending.

The firm found that in 2015 employees contributed a total of $4,698 for their share of the premium cost ($2,490) and their out-of-pocket costs such as co-payments and deductibles ($2,208). In 2005, their premium and out-of-pocket costs totaled $2,001.

Next year, the average employee’s share of the costs is projected to continue to increase to a total of $5,068 ($2,635 toward the premium and $2,433 in out-of-pocket costs).

The employer share of health care costs also has been increasing, and that rise also is projected to continue next year.

The increase in costs was actually relatively modest in 2015. The 3.2 percent rise was the lowest increase since Aon began tracking the data in 1996.

Mike Morrow, senior vice president of Aon Health, attributes the slower growth in costs to a couple of factors:

“The sluggish growth in the economy has deterred many individuals from using medical services, and there’s also been modest price inflation — both factors have been primary drivers for the low rates of premium increases over the past few years.”

However, he adds that premium rates are expected to climb in the future partly due to prescription drug costs continuing to grow at a double-digit pace and to the economy picking up steam.

According to data recently released by the U.S. Census Bureau, employer-based plans are the most common type of health insurance. They comprise 55.4 percent of plans — more than twice as much as any other type of insurance.

To learn more about health insurance costs, check out:

Do you obtain your health insurance through your employer? If so, have your costs increased? Let us know in our Forums. It’s the place where you can speak your mind, explore topics in-depth, and post questions and get answers.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 10 Tips to Maximize Your High-Deductible Health Plan

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,882 more deals!