How Much Does Employer Health Insurance Cost in 2024?

Ashley Brooks
Ashley Brooks1 Jan 2024
Reviewed and Fact Checked ✔️

Offering health benefits to your employees can make your business more competitive and boost retention. In 2024, annual premiums for employer-sponsored family health coverage reached $22,221, with workers paying $5,969 toward the cost of their family coverage, on average. For single coverage, the deductible averaged $1,669. 

Offering health insurance as a business can be incredibly costly as a small business. Mira provides an affordable alternative to maintain your company's competitiveness and retention. With Mira, employers can offer low-cost urgent care coverage, highly discounted prescriptions, lab screenings, and virtual care options coming soon! Plans start for as little as $25 on average per month per employee. Sign up today!

The Cost of Employer-Sponsored Health Insurance

The cost of employer-sponsored health insurance varies depending on numerous factors and increases each year. In 2021, annual premiums rose 4 percent from last year to $22,221 for employer-sponsored coverage. Of those premiums, covered workers contributed 17 percent of the cost for single coverage and 28 percent for family coverage, amounting to an average of $5,969 for their annual premiums. Deductibles for single coverage averaged $1,669. 

Companies with more than 50 full-time workers must offer minimum essential coverage or face tax penalties. While small businesses don’t have to provide health benefits, healthcare can boost the workers’ productivity and missed days due to illness and injury. Businesses see the benefit regardless of company size, as 58 percent of small firms and 99 percent of large firms offer health benefits to at least some of their workers. 

Factors that Influence the Cost of Employer Health Insurance

The cost of employer-sponsored health insurance varies depending on numerous factors. Below are just a few examples of the types of influences on the cost, such as the demographics, the plan type, the location, and the group size of the business.

  • Employee Demographics
  • Insurance carrier
  • Type of plan (PPO or HMO)
  • Location
  • Features (deductibles, copays, out-of-pocket maximums)
  • Network of providers in the plan
  • Your contribution amount

Employee Demographics

Demographics help estimate the medical needs of the employees and the expected level of coverage to anticipate. The average age of your group will be one of the most significant factors impacting the price of your premiums. For example, the average monthly premium for a 21-year-old is $374, whereas the average monthly premium for individuals over 64 is $1,123. If the average age of your group is older, then there will typically be higher premiums to be paid which will increase the overall cost of the health insurance plans. The chart below demonstrates how monthly premiums increase as age increases.

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Ashley Brooks

Ashley Brooks works in Healthcare Consulting and graduates with her MPH in September of 2022 from George Washington University, but graduated with her B.S. in Health Science from James Madison University in 2019. Ashley has been with Mira since June of 2021 and shares the passion for creating affordable healthcare coverage for all!

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