Employer-Sponsored Health Insurance Costs Rise Nationwide; Transparency Compliance Lags

The State Health Access Data Assistance Center (SHADAC) at the University of Minnesota reported that costs for employer-sponsored health insurance plans increased across all U.S. states from 2023 to 2024, surpassing inflation rates. No state experienced a decrease in premiums, highlighting a persistent trend in rising healthcare costs. The average annual family premium reached $24,540 in 2024, an increase of over $600 compared to the previous year, while individual premiums rose by more than $300 to $8,486. Certain states exceeded the national average increase, with Delaware seeing a 26% rise in family premiums, amounting to an increase of over $5,800 year over year. Alabama and Rhode Island also noted significant premium hikes relative to the national average. This upward trajectory in costs poses challenges for employer affordability and employee financial risk, especially as more employers offer high-deductible health plans to mitigate premium increases. Despite rising costs, the rate of employer-sponsored health insurance offers and employee enrollment remained relatively stable, with 69% of eligible employees enrolled in 2024. However, a separate study underscores ongoing issues with transparency in healthcare pricing, particularly concerning federal requirements designed to help employers manage costs effectively. Research published in the American Journal of Managed Care: Population Health, Equity & Outcomes highlights that major insurers—Aetna, Cigna, and UnitedHealthcare—have not fully complied with Transparency in Coverage (TiC) rules based on their 2025 second-quarter pricing disclosures. These regulations mandate that insurers provide comprehensive negotiated price data for key medical services. Incomplete reporting limits employers' ability to compare plans and control healthcare spending. The study recommends that the Centers for Medicare & Medicaid Services (CMS) intensify oversight and enforce penalties to ensure insurers' compliance with TiC data reporting. Enhanced transparency could foster a competitive healthcare insurance market and contribute to cost containment strategies. Benchmarking and regulatory enforcement remain critical as employers face mounting premiums and seek actionable data to make informed purchasing decisions.