This year, 83% of covered workers have a deductible in their plan, similar to last year and up from 70% a decade ago.
Annual family premiums for employer-sponsored health insurance increased 4% this year. The average premium is $21,342, of which employees contribute $5,588, according to the "2020 Employer Benefits Survey" released by KFF on Thursday.
This increase is similar to the annual rise in earnings and inflation. However, plan details such as premiums and deductibles largely reflect decisions made by employers before they felt the full impact of the COVID-19 pandemic and economic crisis. Average family premiums have risen by 55% over the past decade, at least twice as fast as wages and inflation.
Recommended For You
"Conducted partly before the pandemic, our survey shows the burden of health costs on workers remains high, though not getting dramatically worse," said Drew Altman, KFF president and CEO. "Things may look different moving forward as employers grapple with the economic and health upheaval sparked by the pandemic."
About 157 million Americans rely on employer-sponsored coverage. This year, 83% of covered workers have a deductible in their plan, similar to last year and up from 70% a decade ago. The average single deductible stands at $1,644, similar to last year's $1,655 average but up sharply from the $917 average of a decade ago. These two trends result in a 111% increase in the burden of deductibles across all covered workers.
The survey found a large majority (83%) of offering employers say they are satisfied with the overall choice of providers available through their insurance plans, though significantly fewer (67%) say the same about their mental health and substance-abuse networks. About one in five (19%) describe their mental health networks as somewhat or very narrow, potentially leaving workers with limited options at a time when worry and stress related to the pandemic are affecting many working Americans.
"The coronavirus pandemic has increased the need for access to mental and behavioral health services, for which the provider networks are often more narrow than for other services," said Gary Claxton, a KFF senior vice president, director of the Health Care Marketplace Project and lead author of the study. "Some plans have been able to increase access by supporting telehealth, though it's unclear whether such options will become a permanent feature."
Other survey findings include:
- Offer rate: 56% of employers offer health benefits, largely unchanged over the past five years.
- Out-of-pocket maximums: Nearly all covered workers are in plans with a limit on in-network cost-sharing for single coverage.
- Wellness programs: Most large firms (81%) offer at least one type of wellness or health promotion program.
Read more:
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
