Employee-paid family health insurance premiums offered through workplaces climbed faster in Utah than in most other states, exceeding the national average. This increase comes as Congress continues to debate the future of health care tax credits that help millions of Americans afford coverage.
A new 50-state analysis by the State Health Access Data Assistance Center (SHADAC) at the University of Minnesota highlights the growing affordability challenge tied to employer-sponsored health insurance.
National Health Insurance Costs Continue to Climb
According to the SHADAC report, health insurance costs across the U.S. rose by 2.5% last year, a pace that surpassed overall inflation. These increases affected both family and individual plans offered through employers.
Average U.S. Premiums
- Family coverage: $24,540 annually, up more than $600 from 2023
- Individual coverage: $8,486 annually, an increase of over $300
These rising premiums show how job-based health insurance is becoming more expensive nationwide.
Utah Experiences Above-Average Family Premium Increases
Utah families felt an even sharper impact. The average annual premium for employer-sponsored family coverage in Utah rose by $1,084, nearly a 5% increase in just one year.
This placed Utah among 21 states where family premiums jumped by at least $1,000 annually—well above the national increase.
Why the Impact Is Significant for Utah Residents
The effects are far-reaching because Utah relies heavily on employer-sponsored insurance:
- 2.1 million Utah residents were covered through an employer in 2023
- This represents more than 60% of the state’s population
- Utah has the highest rate of job-based health insurance coverage in the country
With such widespread reliance on employer plans, rising health insurance premiums in Utah could affect hundreds of thousands of families.
A Mixed Picture: Individual Premiums Decline
Not all the news was negative. The analysis found that individual premiums for Utah workers decreased, offering some relief for employees with single coverage. However, experts caution that this decline does not offset the broader affordability challenges tied to family plans.
Experts Warn of Long-Term Affordability Issues
Elizabeth Lukanen, director at SHADAC, warned that employer-sponsored health insurance is becoming increasingly unaffordable for both businesses and workers.
She emphasized that policymakers must confront the long-term trend of rising health care costs, especially as lawmakers face an urgent deadline to address expiring Affordable Care Act subsidies. Without action, millions of Americans could face even higher out-of-pocket expenses.
Policy Debate Adds Uncertainty
With Congress still divided over health care tax credits and the future of Affordable Care Act subsidies, uncertainty continues to loom. Experts argue that any solution to the health care affordability crisis must include reforms targeting employer-sponsored insurance costs, which have steadily increased for decades.
