Kirk Vartan is feeling the pinch of rising health insurance costs. He pays over $2,000 a month for a high-deductible plan through Covered California, the state’s health insurance exchange. While he could have chosen a cheaper option, he wants to keep his wife’s doctor in-network. “It’s for the two of us, and we’re not sick,” he says, highlighting the frustration many Californians feel as premiums outpace inflation.
In the last 15 years, the average monthly premium for family health insurance from employer-provided plans in California has nearly doubled, jumping from just over $1,000 in 2008 to almost $2,000 in 2023. This trend isn’t unique to California; nationwide premiums have seen similar rises during this period, putting financial pressure on families and employers alike.
According to the Kaiser Family Foundation, the average annual cost of family health insurance in California reached around $24,000 in 2023. This translates to over $2,000 a month, with employers typically covering about two-thirds of the bill. However, workers are feeling the squeeze, as their share has been rising rapidly.
For many families, especially those employed by small businesses, finding affordable health insurance is becoming more challenging. A significant drop in the number of small businesses offering health insurance exacerbates the issue. From 1999 to 2023, the percentage of companies with 10 to 24 employees providing coverage decreased from 65% to 52%, according to the Employee Benefit Research Institute. This trend forces many workers to rely on state-run exchanges like Covered California to secure insurance, further straining this system.
Rising costs are also hitting government workers hard. CalPERS, which insures over 1.5 million public employees, saw premiums rise about 31% since 2022. This increase impacts taxpayers because a portion of these costs is covered by public funds.
Experts highlight that much of this surge in premiums is due to skyrocketing healthcare costs. Over the past decade, hospital and nursing home costs alone have surged by 88%, outpacing general inflation significantly. Miranda Dietz, a researcher at the UC Berkeley Labor Center, notes, “Insurance premiums have been going up faster than wages over the last 20 years.”
As financial pressure mounts, many people are forgoing necessary healthcare. A recent report indicates that health insurance premiums and deductibles in California now average around 12% of median household income, up from just 4% two decades ago. This shift is making it difficult for families to afford even basic care, particularly preventive measures.
In response, California has enacted measures aimed at controlling health care costs, such as setting statewide spending growth caps. The newly established Office of Health Care Affordability seeks to limit annual growth in health care spending, although the effectiveness of such measures remains to be seen.
In a landscape where many worry about the rising cost of healthcare, social media discussions and user reactions reflect widespread concern. Many Californians are sharing their stories online, creating a growing community united by similar experiences of frustration and financial strain.
While the California government works on solutions, healthcare costs continue to challenge families and small businesses. Addressing these issues will require collective action from policymakers, businesses, and the health care system to ensure that coverage remains accessible and affordable for everyone.
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