January 24, 2022 – A recent report from the Commonwealth Fund found that health insurance premiums and deductibles for Americans with employer-sponsored coverage accounted for 11.6% of median income in 2020, a significant 9.1% increase from 2010.
“The findings are a stark reminder of what we already know — that health care costs are rising more quickly than the income for working families,” Sara Collins, vice president for health care coverage and access at The Commonwealth Fund, told Yahoo Finance, “which means health care costs are taking up a larger and larger share of household budgets.”
Premium contributions and deductibles change from state to state. New Mexico, Oklahoma, Louisiana, Mississippi and Florida spend between 15-19% of their median income on these costs. “If you’re spending more on premiums, that’s just coming right out of your monthly budget,” Collins said. “So you usually have less money to spend on other items. If your deductibles are growing, you might not necessarily meet the deductible or have to use any health care, so it might just be potential spending on care.”
South Carolina residents paid the most in premiums for single coverage at $1,895 while Florida residents took the top spot for family coverage at $7,674. At the lower end for single coverage is Hawaii at $852, and Washington state for family coverage at $4,610. Deductibles, meanwhile, are also taking away chunks of cash from Americans. Hawaiians spend the least amount at $1,346 while Montana residents on average must meet a deductible of $2,517.