In 2023 the average annual Arizona health insurance premium per employee will be $13,800!
Aon, a professional services company, predicts that most employers will see an average premium increase of 6.5% over 2022 premiums. The average group health insurance premium increase in 2021 and 2022 was 3%, well below the 9.1% inflation rate at the time.
During the pandemic most employees were canceling doctor’s appointments and postponing operations which resulted in lower claims activity. Health insurance claims are now increasing due to increased demand for medical care, and inflationary costs are kicking in.
Other factors contributing to the 6.5% premium increase are new technologies, specialty and blockbuster medications, and the increase in catastrophic claims.
Due to the tight labor market employers are paying approximately 81% of the employee premium, though they are only required to pay half the employee-only cost. During the pandemic employees have not felt the true cost of care in their wallets as employers have been absorbing these costs, but 2023 may be a different story. As inflation continues to affect the bottom-line employers may be forced to pass along some of these costs to the employees if they wish to stay in business.