The Rise in Private Sector Employer-Sponsored Health Insurance Premiums (June 2022) – Kansas Health Institute

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The Rise in Private Sector Employer-Sponsored Health Insurance Premiums (June 2022)

More than half (55.6 percent) of Kansans obtained their health insurance through a private or public sector employer in 2019. Among private sector employers, about half (51.8 percent) offered health insurance benefits, enrolling an estimated 533,090 employees in an employee-only, employee plus one or a family plan at an annual total premium (employer and employee share) of $6.3 billion statewide. This issue brief provides data on the average amount paid by private sector employers and employees for employer-sponsored health insurance premiums over the last decade, the average employer and employee contributions in 2020 and compares premiums paid in Kansas to premiums across the United States.

Key points include:

  • The average annual premium for enrollees in private sector employer-sponsored insurance plans in Kansas rose from $8,463 to $11,738 between 2010 and 2020 – a 38.7 percent increase, which was similar to the increase in the United States during that time (40.3 percent).
  • The percent of employees enrolling in health insurance at private sector businesses that offered coverage declined from 62.0 percent in 2010 to 53.6 percent in 2020 as average premiums increased and the percent of the average premium contributed by employers decreased.
  • Kansas employers contributed 69.3 percent of the annual premium cost on average in 2020, but contributions varied by plan type and size of business. Contributions were highest (77.4 percent) for employee-only plans at large businesses (50 or more employees) and lowest (50.3 percent) for employees enrolled in family plans at small businesses (50 or fewer employees).
  • The average premium for enrollees in employer-sponsored insurance plans across the country varies widely. Arkansas had the lowest average annual premium, $9,973, and Alaska had the highest, $13,703.

Upcoming Event

Event: Rising Cost of Care in Kansas: Employer Perspectives & State Policy Options

Lowering the cost of healthcare remains one of the top priorities for Americans, according to public opinion polls. In Kansas, over half of the population receives health coverage through an employer’s health benefits program – and data show that premiums for employer-sponsored insurance increased by nearly 40 percent over 10 years, taking up 8.4 percent of compensation for private sector employees in Kansas in 2020 (a rate higher than in 28 other states). This event will look at the affordability of health insurance from the perspective of the employer and the options available for state policymakers to address the rising cost of healthcare. It will include a panel representing employers and business groups and another panel examining state policy options.

  • When: Thursday, June 16, 2022, from 10:30 AM to 2:30 PM CST (Includes a break for lunch)
  • Where: The event will be presented in a hybrid format, with in-person and virtual attendance options available. Lunch will be provided for in-person attendees — seating is limited. The venue is the Kansas Health Institute, 212 SW 8th Avenue, Topeka, Kansas.

Register Here to Attend in Person
Register Here to Attend Virtually

The Kansas Health Institute supports effective policymaking through nonpartisan research, education and engagement. KHI believes evidence-based information, objective analysis and civil dialogue enable policy leaders to be champions for a healthier Kansas. Established in 1995 with a multiyear grant from the Kansas Health Foundation, KHI is a nonprofit, nonpartisan educational organization based in Topeka.

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