Health Insurance Costs – What Percent of a Family’s Budget Is Spent on Health Insurance?
The amount that people pay for health insurance is a huge topic. In this article, we’ll look at how much insurance costs, what percentage of a family’s budget is spent on it, and how many out-of-pocket costs people incur when they’re uninsured or don’t have insurance.
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Costs of health insurance in lower-wage companies
The costs of health insurance are high, especially for middle-class families. By 2020, 37 states will require the minimum premium for health coverage to be 10 percent of a worker’s pay. This burden is most noticeable in lower-wage companies, where workers pay a higher share of the premium and a higher dollar amount.
In 2019, the cost of family coverage was $20,576. Workers paid about six percent of that cost or $1,242 on average. For single coverage, the cost rose by 4% to $7,188. Inflation rose 2%, but wages rose 3.4%. Moreover, the average deductible on a single plan rose by more than a third in five years. In addition, a third of covered workers had deductibles exceeding $2,000.