The average cost of employer-provided health coverage passed $20,000 for a family plan this year, according to a new survey by the Kaiser Family Foundation.
Premiums rose 5% to $20,576 for the employer-provided plans in 2019. On average, 71% of that cost is borne by the businesses while the rest is paid by the employee.
But why is this number such a milestone? As economist Drew Altman told WSJ: "It's the cost of buying an economy car, but buying it every year."
Though employers still bear a larger percentage of the overall cost of health-insurance plans, costs for families rose even more swiftly than costs for employers this past year, with an 8% jump (to $6,015 a year). Singletons fared slightly better: Premiums for the individual plans increased by just 4% (to $7,188).
The disappointing fact is that, for many companies, a 5% annual increase in health-benefit-related costs isn't new, according to WSJ. And some firms are instituting new policies, like a $250 penalty for employees who get imaging scans without checking a price-transparency system.