Health insurance costs spike for businesses, workers after pandemic

"The cost of employer-sponsored health insurance in California rose at twice the pace of inflation over the past three years, squeezing workers' paychecks and small businesses alike. More than 17 million Californians have health insurance through their job, according to a survey released in November by the health information group KFF. The average cost of premium payments for an employee's family plan rose 24% to $28,400 a year, the survey found."

"Health insurance premiums have risen year after year for decades. But costs spiked after the start of the COVID-19 pandemic, driven by industry consolidation, increasing use of Ozempic and similar weight-loss drugs and other factors, according to KFF. Together, these forces are putting pressure on families and businesses, while some major health insurance providers in California continue to post profits."

"People are paying more and more, it's taking up more and more of their family budgets, and they're getting less, said Miranda Dietz, who leads UC Berkeley Labor Center's health program. Along with rising premiums, more California employees also face increasing out-of-pocket costs. Workers bear indirect costs, too, Dietz said. As businesses spend more on health plans, they spend less on wages and other benefits, she said."

Employer-sponsored health insurance costs in California rose 24% over three years, bringing the average family-plan premium to $28,400 annually. More than 17 million Californians receive insurance through their jobs. National inflation rose 12% and wages grew 14% over the same period, leaving premiums rising faster than both. Premium spikes accelerated after the COVID-19 pandemic due to industry consolidation, greater use of Ozempic and similar weight-loss drugs, and other factors. Employers cover the majority of premiums—about three-quarters for family plans and roughly 85% for single plans. Rising premiums increase out-of-pocket costs and reduce funds available for wages and other benefits.

Read at www.mercurynews.com