Research Note: Corporate Health Care Costs

Corporate health care costs have been rising steadily over the past decade, placing an increasing burden on employers and employees alike. According to the Kaiser Family Foundation's 2022 Employer Health Benefits Survey, the average annual premium for employer-sponsored family health coverage reached $22,463, a 43% increase from 2012 premiums. Employers covered 72% of this cost on average, while employees paid the remaining 28%, in addition to rising deductibles and out-of-pocket expenses. These escalating costs have led many companies to explore strategies like high-deductible health plans, wellness programs, and narrow provider networks to control expenses without sacrificing coverage quality.

The impact of rising health care costs varies by insurance provider, with some exhibiting higher premium increases than others. A 2023 analysis by the consulting firm Mercer found that among the largest national carriers, UnitedHealthcare had the highest average premium increase at 7.2%, followed by Aetna at 6.8% and Cigna at 6.1%. Blue Cross Blue Shield plans, which operate independently in each state, showed more variation, with average increases ranging from 4.5% to 8.3% depending on the specific plan and region. Notably, these figures represent fully-insured plans; self-funded plans, more common among larger employers, may have experienced different cost trends based on their unique employee populations and plan designs.