How many people have health insurance in the US 2022?

Group health insurance is more common than you may think and getting a better understanding of how prevalent employer-sponsored health insurance is in the United States is a great way to equip yourself with the knowledge needed to make decisions about your health care coverage needs.

As a small business owner you may wonder how many Americans have group health insurance, especially if you are considering offering employer-sponsored health insurance to your employees and their dependents. As an employee of a small business, you may be interested in knowing whether or not it’s the norm to be offered health insurance from your employer.

How many Americans have health insurance?

In 2022, the national uninsured rate in the United States has reached an all-time low of 8%. With the COVID-19 pandemic still looming and other diseases reemerging, people have become more aware of the importance of health insurance than ever before. In 2020, private insurance, including group and non-group insurance, covered 211 million according to the Congressional Research Service. 60 million were covered under Medicare, 58 million were covered under Medicaid, and 12 million were covered under military insurance. Since then, an additional  5.2 million people have obtained health insurance coverage. 

Although statistics like these indicate that more people have enrolled in health insurance, there are still many misconceptions and too many people still wait until they think they need insurance to enroll. If you wait until you need to go to the emergency room, you will likely only receive short-term care and be inundated with bills, with qualified care ending after your visit. 

Many Americans also may assume that health insurance is completely beyond their budget, though there are actually health insurance plans designed for smaller budgets and with affordability in mind. Examples of these are  short-term health insurance and medical cost sharing. Health insurance can cover many essential healthcare services that are key to maintaining good health. It protects policyholders from paying exorbitant and unexpected medical costs. In-network health insurance makes it possible to pay less for medical care than you would pay out-of-pocket, even before the deductible is met as well. Some free preventative care is available like screenings, check-ups, and other essential services. Those who have a marketplace plan or other forms of qualifying coverage may not have to pay penalties those without coverage are required to pay.

How many Americans get health insurance from their employer?

In 2021, the number of people covered by health insurance from their employer sits at around 156 million, or 49% of the country’s population. The average annual premium for employer-sponsored health insurance is around $7,739 for an individual and $22,221 for a family.

Employer-sponsored health insurance coverage of the U.S. population by state percentage

Source: The Kaiser Family Foundation.

According to the Kaiser Family Foundation, in small businesses, 29% of the employees with employer-sponsored health insurance have their entire premium covered by their employer for individual coverage, while in larger companies, only 5% have this benefit. On the other hand, 31% of covered employees in small businesses have to contribute more than half of their premiums for a family health plan, while only 5% of employees working in larger companies have to do so. These statistics on employer-sponsored health insurance show that for small businesses, employers tend to offer coverage that focuses on the employee’s individual care. It is important to find the right balance and offer health insurance plans that suit your business and employees.

Which states have the most people covered by group health insurance?

The five states with the greatest total number of people covered by employer-sponsored health insurance are:

1. California – 18,253,400 people or 47 percent of the state population.
2. Texas – 13,126,800 or 48 percent of the state population.
3. New York – 9,536,300 or 49 percent of the state population.
4. Florida – 8,155,800 or 40 percent of the state population.
5. Illinois – 6,675,200 or 53 percent of the state population.

Source: KFF data.

Some of the largest and most economically robust states in the nation correspondingly have almost half or over half of their citizens benefiting from employer-sponsored health coverage.

Which states have the highest percentage of people covered by group health insurance?

The states with the greatest percentage of residents who have employer-sponsored health insurance coverage are:

1. Utah – 60 percent of state residents.
2. North Dakota – 58 percent of state residents.
3. Minnesota/New Hampshire/Wisconsin – Tied at 57 percent for people in each of these three states.
4. Maryland/New Jersey/Nebraska – Tied at 56 percent for people in each of these three states.
5. Iowa/Massachusetts/Kansas – Tied at 55 percent for residents in each of these three states.

Source: KFF data.

Each of these states has more than half of its people covered by group health insurance.

Should small businesses offer group health insurance in their state?

Although offering small business health insurance is optional for small businesses with less than 50 full-time equivalent employees, there are several reasons you may consider providing group health insurance to your employees based on market and industry trends in your state or neighboring states.

• Your small business could begin by looking at the percentage of people in your state who have employer-sponsored health insurance coverage.
• Depending on the situation and competition, if a high percentage of similar businesses are offering group health insurance in your state, you may want to consider doing so too.
• Employer-sponsored health insurance is highly prized among employees, and offering insurance coverage as a benefit may help you stand out as a desirable employer of choice.
• If a relatively low percentage of businesses in your local area offer group health insurance, then providing employer-sponsored coverage to your workers may lend your company a competitive advantage by being better able to recruit and retain quality employees.

While the practices of competing and neighboring local or state businesses are only one of many important factors to take into account while considering employer-sponsored health insurance, they nevertheless may serve as a helpful starting point for your decision-making process.

Benefits of offering group health insurance

According to employer-sponsored health insurance statistics and research, it is more likely for employers who invest in the health of their workers to have lower turnover and more energetic, more productive teams. Of course, the size and profit margin of an employer will determine whether providing group coverage is realistic. However, there are many plans and options available, and the chances are high that a group policy will save any employer more time and money than they will save by forgoing it.

Overall, there are many reasons to offer small business health insurance. Health costs will be lower for everyone who works at your business if employer-sponsored health insurance is offered. With more people paying into a pool, better benefits and more reliable coverage will be available. Employees will also be more likely to stay at your business in the long term if they are offered group insurance and recruiting for new talent will be easier as well. By offering employer-sponsored health insurance, you are supporting your employee’s health and well-being, creating a caring, positive company culture.

Drawbacks of offering group health insurance

There is also the possibility that your employees will have worries and concerns about employer-sponsored health insurance. They may be in fear of discontinuation, so if you decide on offering a group health plan, it is important to be consistent. There is also a lack of individual control for their plans, so it may be beneficial to look for a plan that has a lot of flexibility. 

How much do most employers pay for group health insurance?

According to the U.S. Bureau of Labor Statistics, health insurance was available to around 77 percent of all private industry employees and 54 percent of them took advantage of this benefit. In general, employers pay around 78 percent of health insurance premiums for individual coverage and about 66 percent for family coverage. On average, the monthly premium cost for employers is $475.69 per employee and $1,174.00 per family. 

Employer-sponsored health insurance statistics: FAQs

Why does the US have employer-sponsored health insurance?

Employer-sponsored healthcare has its origin in World War II, a time when Americans were accustomed to needing to pool resources. Companies were also using it as a way to attract the best talent when much of the adult workforce was off fighting the war. Today, many businesses make health insurance available to entire workforces, rather than making it exclusively available to those at the top of the payscale. If you are a small business owner, there are also ways for you to offer health benefits to your employees. Take a look at these small business health plan resources to get started.

Are employers required to offer health insurance?

Companies with 50 or more employees are required to offer some form of health insurance coverage. Employers have a choice when it comes to how they want to do this, and group plans tend to be the most efficient, effective, and affordable solution. 

What is a small business HRA?

Small business HRAs are health care plans designed for small businesses to offer to their employees. This type of health reimbursement arrangement is specially designed for organizations with smaller profit margins and less capital to provide insurance coverage for their employees. As mentioned above, the more people who have health insurance, the less of a burden it is on the taxpayers. Therefore, it is in the interest of the public purse for these types of plans to exist.

Today, Qualified Small Employer HRAs (QSHRAs) are increasingly popular as a solution that works well for proprietors and their employees and families. These types of plans are an excellent resource for employers who see the value of investing in a healthy, secure workforce. 

Find a group health insurance that suits your business

Around half of the nation’s population enjoys the benefit of employer-sponsored health insurance. Even though Americans have health coverage from a variety of different sources, group health insurance provided by their companies and businesses forms a major part of the country’s health care landscape.

If you are considering offering employer-sponsored health insurance to your employees, then you have come to the right place. eHealth can help you find small business health insurance that best fits the needs of your company. Visit ehealthinsurance.com or speak with one of our registered insurance agents today.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.

How many americans have health insurance in 2022?

What percentage of US citizens have health insurance?

How many people in the US have health insurance?

Are health insurance premiums rising in 2022?