Report: Avg. healthcare premium in Hartford area tops $8,200

Hartford Business Journal – Thursday, December 5, 2024
By David Krechevsky

A newly published analysis of the cost of employer-sponsored healthcare plans found that the cost of premiums nationwide has outpaced inflation over the past two decades, with the average cost in the Hartford metropolitan area topping $8,200.

The report, titled “Health Insurance Cost by State for Employees and Employers,” was produced by researchers at Take Command, an online platform that helps companies provide health benefits to employees through health reimbursement arrangements

According to the report, employer-sponsored plans remain the primary source of health insurance for most Americans under age 65 and their families, covering nearly 165 million people in 2023.

The cost of providing those benefits, however, continues to increase for both employees and employers, with projections for 2025 indicating that healthcare costs will rise by 8%, reflecting the continued pressure of rising prices.

In fact, the report found that since 2000, the cost of premiums has significantly outpaced inflation.

Some key takeaways:

• In 2000, the average premium for single coverage was $4,698 in 2023 dollars, with employees paying $796 and employers covering the remaining $3,902. By 2023, average premiums had risen to $8,182, with employees contributing $1,640 and employers, $6,542 — an inflation-adjusted increase of 74%.
• The average inflation-adjusted premium for family coverage in the U.S. was $11,983 in 2000; by 2023, that figure had grown to $23,938, and employee contributions increased from an average of $2,856 to $6,889.
• In the Hartford metro area, which includes East Hartford and West Hartford, the average premium for single coverage in 2023 reached $8,206 per year, while family coverage cost an average of $25,243 annually.
• For single coverage, employees in the Hartford metro contributed $1,728 on average last year, while employers contributed the remaining $6,478. For family coverage, employees paid $7,059, employers, $18,184.

In its analysis, Take Command explored the cost of health insurance over time, by firm type and by location.

The report found that health insurance premiums vary widely across the U.S., with the highest costs concentrated in Northeastern states. New Jersey, Massachusetts and New York reported the highest average premiums for both single and family coverage.

In 2023, the average premium for single coverage in New Jersey reached $9,662, while family coverage in the state cost an average of $26,870 — both well above the national averages of $8,182 for single and $23,938 for family coverage.

Neighboring states Massachusetts and New York were close behind, with family coverage premiums averaging $26,355 in each state.

The report noted that high premiums in the Northeast reflect the region’s high per-capita healthcare spending, which according to the U.S. Centers for Medicare & Medicaid Services is about 25% greater than the national average.

States in this region also often have more comprehensive healthcare mandates and regulations, which can result in higher premiums, the report states.

In contrast, states in the South and parts of the Midwest report some of the lowest average premiums. For example, in Mississippi the average premium was $7,243 for single coverage and $21,939 for family coverage in 2023. The lower premiums may reflect lower healthcare spending per capita, less comprehensive plans offered by employers, and fewer mandates.

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