LANSING, Mich. (WZMQ) – Employer-sponsored health insurance, the primary source of coverage for more than half of Americans, is becoming increasingly expensive, according to a new study from the State Health Access Data Assistance Center (SHADAC) at the University of Minnesota.
The analysis found that from 2023 to 2024, premiums for both individual and family coverage increased at rates that matched or outpaced inflation. In Michigan, annual premiums now average $8,885 for individual coverage and $24,252 for family plans.
“Overall, we’re seeing steady growth in employer-sponsored insurance costs, and that’s a real concern,” said Andrea Stewart, a research fellow with SHADAC.
While Michigan has often seen lower-than-average costs compared to other states, Stewart said that trend is changing.
“We’re seeing some changes in Michigan that are driving some increases that are, in years where they might have been lower on average, they’re now more on par with the U.S. level,” she said.
Beyond premiums, the study highlights rising deductibles as a growing issue for workers. Stewart noted that deductibles are often overlooked until people need medical care.
“Deductibles are one of the quieter costs of employer-sponsored insurance,” she said. “When you have an unexpected medical event or a new diagnosis, and you do have to interact with the healthcare system, that can really catch up to you.”
The increasing costs may also be affecting smaller businesses. According to Stewart, fewer small employers are offering health insurance coverage than in previous years.
“Overall, on a trend, we have seen fewer small employers offer employer-sponsored insurance,” she said.
Researchers say the findings underscore the importance of including employer-sponsored insurance in broader conversations about health care affordability.
You can view the full analysis here: SHADAC.org/publications/employer-sponsored-insurance-affordability-access-cost-2024
