Health insurance costs spike for California businesses, workers after pandemic

"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. Meanwhile, the national inflation rate was 12%, and wages grew by 14%, KFF wrote."

"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."

"Under the Affordable Care Act, businesses with at least 50 full-time equivalent employees must offer health insurance coverage that meets affordability and care requirements, or face fines. Workers and businesses split the cost, and in practice, businesses shoulder most of the burden: employers pay about three-quarters of a family plan premium, on average, and about 85% of single plans, according to KFF."

Employer-sponsored health insurance costs in California rose 24% over three years, bringing average family plan premiums to $28,400 annually. More than 17 million Californians receive coverage through their jobs. National inflation rose 12% and wages increased 14% over the same period. Premium growth accelerated after the COVID-19 pandemic, driven by insurer consolidation, rising use of Ozempic and similar weight-loss drugs, and other factors. Rising premiums increase out-of-pocket costs and reduce employers' ability to raise wages and benefits. The Affordable Care Act requires firms with 50+ full-time equivalents to offer affordable coverage; employers typically pay about three-quarters of family premiums.

Read at The Mercury News