Report: Virginia Families, Employers Continue to Face Rising Health Insurance Premium and Deductible Costs Despite State Health Care Spending that is Below the National Average
An Analysis by Altarum, a Non-Partisan Research Firm, Finds that Virginia Health Care Spending and Spending as a Share of GDP are Below National Levels Even as Average Insurance Premiums – Increases of 76.6% for Single Coverage and 79.3% for Family Coverage – and Deductible Costs Keep Rising to Levels Now Approaching the National Average, Indicating Privately-Insured Virginians Don’t Financially Benefit from Lower State Health Care Spending at a Time When Insurance Costs are Rising at a Rate Higher than Growth in Insurance Company Spending on Health Care Services
RICHMOND, VA – When it comes to health care spending, Virginia is in the enviable position of having expenditure rates that remain well below national levels. The same cannot be said for health insurance costs, unfortunately.
On the contrary, the amount that individuals and families across the Commonwealth spend on annual health insurance premiums and out-of-pocket deductibles continues to rise sharply year-over-year. Meanwhile, the gap between what individuals and families pay for insurance, and what insurance companies pay for health care services, continues to widen. Those findings are part of a new report from the non-partisan research firm Altarum that examines 2022 health spending in Virginia based on data from the Centers for Medicare & Medicaid Services (CMS), Virginia’s All-Payer Claims Database, and other public sources.
The Altarum analysis shows that the average single health insurance premium in 2022 was $7,400 and the average family health insurance premium was $21,400 for people with private sector employer-sponsored health care coverage. When the average cost of deductibles is included, the averages increase to “$9,400 for single coverage and $25,200 for family coverage.”
The report further notes that “premiums for single coverage of a private-sector employee are up 76.6 percent and family premiums are 79.3 percent higher” since 2008. When increases in cost-sharing co-pays and deductibles for single and family plans are factored in, total plans costs in 2022 were 89.1 percent higher over that span in both categories. (see image below) Those increases have been a consistent trend, as a previous Altarum report on 2021 health care spending in Virginia similarly found significant growth in the total average cost of single and family health insurance premiums as well as growth in out-of-pocket costs.
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