This survey asks employers about the price of single protection and protection for a household of 4 for as much as two of their largest plans.
Well being Insurance coverage Premiums
In 2025, the common premiums for lined staff in California are $10,033 for single protection and $28,397 for household protection. Premiums for lined staff in California are larger than for lined staff nationally for each single protection ($10,033 vs. $9,325) and household protection ($28,397 vs. $26,993).
Plan Kind: Premiums range by plan kind. The common annual household premium for lined staff in HMOs is decrease than the general common ($26,562 vs. $28,397). Common premiums for lined staff in HDHP/SOs, together with HSA-qualified plans, are much like the general common for each single and household protection.
Agency Dimension: The common annual premium for household protection is decrease for lined staff at companies with 10 to 199 staff than for lined staff at bigger companies ($24,990 vs. $29,595).
These premium quantities may be in comparison with the revenue of individuals with job-based protection. In California, non-elderly people with employer-sponsored insurance coverage who reside alone have a median revenue of $86,000. Amongst households of 4 with employer-sponsored insurance coverage, the median revenue is $183,560. Amongst all households of 4, together with these not enrolled in an employer plan, the median household revenue is $134,000.
Agency Traits: Premiums range by the age of the agency’s workforce.
- In California, the common premiums for lined staff at companies with massive shares of youthful staff (companies the place at the least 35% of the employees are age 26 or youthful) are decrease than the common premiums for lined staff at companies with smaller shares of youthful staff for household protection ($24,906 vs. $28,614).
- In California, the common premiums for lined staff at companies with massive shares of older staff (companies the place at the least 35% of the employees are age 50 or older) are larger than the common premiums for lined staff at companies with smaller shares of older staff for each single protection ($10,543 vs. $9,413) and household protection ($30,099 vs. $26,289).
Premium Development: Since 2022, household premiums have elevated 7% yearly in California, much like the nationwide general improve of 6%. Premiums for single protection elevated 8% yearly in California and 6% nationally. For comparability, the annual inflation price over the interval was 4% on common, and staff’ wages elevated 5%. Within the final yr, there was a rise of 4% in staff’ wages, and inflation was 2.7%.
Since 2022, the common premium for household protection has risen from $22,891 to $28,397, a rise of 24%, in comparison with inflation (12.2%) and wage development (14.4%). Within the years earlier than the 2022 CHBS was fielded, the economic system had skilled excessive basic inflation. Since 2020, inflation has risen by 24%, a lot quicker than the ten% improve between 2015 and 2020, or the 8% improve between 2010 and 2015.
Distribution of Premiums: Premiums for household protection in California range significantly. Premiums are set primarily based on quite a lot of elements, together with the price of suppliers within the community, the extent of lined advantages, the fee sharing construction, and the variety of well being providers utilized by enrollees. Amongst California staff with single protection, 15% are employed at a agency with a mean annual premium of at the least $12,500. Fifteen p.c of lined staff are in a plan with a household premium of lower than $21,000, whereas 27% are in a plan with a household premium of $33,000 or extra.
Employee Contributions to the Premium
For a lot of staff, medical health insurance is a crucial element of their complete compensation. On the identical time, most staff are required to contribute on to the price of their medical health insurance premiums, often by payroll deductions. The common employee contribution for lined staff in California in 2025 is $1,303 for single protection and $7,312 for household protection. On common, lined staff in California contribute an analogous quantity to the nationwide common to enroll in single or household protection.
Employers contribute extra to the price of single protection for lined staff in California than employers do nationally ($8,730 vs. $7,884).
Change Over Time: In comparison with 2022, California lined staff contribute an analogous quantity to enroll in single protection ($1,192 vs. $1,303) and household protection ($6,735 vs. $7,312). Since 2022, the common contribution for household protection in California has elevated by about 9%, or roughly 3% per yr, however this doesn’t characterize a statistically important change.
Agency Dimension: In California, the common household protection premium contribution for lined staff in smaller companies (10 to 199 staff) is far larger than the common for lined staff in bigger companies ($9,980 vs. $6,374).
Agency Traits: In California, whereas the common premiums and employee contributions are related between companies with a big share of lower-wage staff and people with fewer lower-wage staff, the common employer contribution differs. Corporations with many lower-wage staff contribute much less towards the price of household protection ($21,409 vs. $18,001).
Share of the Premium Paid for by Staff: On common, lined staff in California contribute 14% of the premium for single protection and 27% of the premium for household protection, much like the nationwide averages.
Agency Dimension: Lined staff in California in small companies contribute a better share of the household premium than these in bigger companies, 40% vs. 22%.
Share of the Premium Paid for by Staff by Agency Traits: The common share of the premium paid instantly by lined staff differs throughout kinds of companies in California.
- Lined staff in personal, for-profit companies have comparatively excessive common contribution charges for single protection (18%) and for household protection (31%) protection. Lined staff in public companies have comparatively low common premium contribution charges for household protection (20%). Lined staff in personal not-for-profit companies have comparatively low common premium contribution charges for single protection (5%).
- Lined staff in companies with many higher-wage staff (the place at the least 35% earn $80,000 or extra yearly) have a decrease common contribution price for household protection than these in companies with a smaller share of higher-wage staff (23% vs. 31%).
- Lined staff in companies which have at the least some union staff have a decrease common contribution price for household protection than these in companies with none union staff (20% vs. 32%).
Distribution of Employee Contributions: In California, for single protection, 47% of lined staff at small companies are enrolled in plans with no premium contribution, in comparison with solely 13% of lined staff at massive companies. For household protection, 35% of lined staff at small companies are enrolled in plans with a employee contribution of greater than half the premium, in comparison with solely 5% of lined staff at massive companies.
A bigger share of lined staff in California are enrolled in a single protection plan with out a premium contribution than lined staff nationally (23% vs. 12%). This sample additionally holds amongst lined staff at small companies (13% vs. 7%).
One other strategy to illustrate the excessive value of household protection for some staff is to look at the share of staff going through massive annual premium contributions. Many staff at small companies encounter substantial prices in the event that they select to enroll dependents. Amongst companies providing household protection, 38% of lined staff in small companies are enrolled in a plan with a premium contribution exceeding $10,000, in comparison with 12% of lined staff in massive companies.
