**Healthcare Costs Continue to Burden Employers and Workers Alike**
The cost of healthcare in the United States has reached a staggering $20,000 per year for family coverage, with employers shouldering the majority of the expense. According to a recent report by the Kaiser Family Foundation, companies are paying an average of $14,100 annually, while workers are contributing $5,550 – a 65% increase from just a decade ago.
**Premiums Outpace Wage Growth**
Despite modest premium increases in recent years, the overall cost of healthcare has grown at an alarming rate. Since 2008, family premiums have risen by 55%, far outpacing workers’ wages and inflation. Single coverage premiums have also seen a significant increase, reaching $6,900 on average, with workers paying around $1,200 per year.
**Deductibles Continue to Rise**
Deductibles have become a major concern for workers, with the average deductible now standing at $1,350 – a 212% increase since 2008. This rapid growth has outpaced wage growth by a factor of eight. Moreover, a growing number of workers are subject to deductibles, with 85% of employees facing this added expense, compared to 59% a decade ago.
**Employers Seek Solutions**
In an effort to curb rising healthcare costs, employers are exploring alternative solutions. Some companies, such as Amazon, Berkshire Hathaway, and JPMorgan Chase, are partnering to provide better healthcare options and reduce expenses. Others are contracting directly with hospitals and providers to offer more affordable care. Additionally, many employers are implementing performance-based networks, which allow them to lower costs by limiting their networks to high-quality providers.
**Telemedicine on the Rise**
Telemedicine is another area where employers are investing, with 74% of large companies offering coverage for virtual visits. However, employee adoption remains low, with only 0.51% of those in large employer plans utilizing telemedicine services in 2016.
As healthcare costs continue to rise, it’s clear that employers, workers, and policymakers must work together to find sustainable solutions. With the issue of healthcare taking center stage in the national conversation, it’s imperative that we address the growing burden of out-of-pocket expenses and find ways to make quality care more accessible and affordable for all.
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