The cost of family health insurance, including deductibles, has been steadily increasing over the years. A deductible is the amount you, as a policyholder, must pay out-of-pocket before your insurance coverage kicks in.   

Average Family Deductible

The average deductible for family health insurance plans varies depending on factors such as the type of plan (e.g., HMO, PPO, HSA), the level of coverage, and geographic location. However, in recent years, we’ve seen a significant rise in average family deductibles.

According to the Kaiser Family Foundation, the average deductible for family coverage in employer-sponsored health insurance plans in 2023 was $5,227. This means that a family would need to pay this amount out-of-pocket for covered medical expenses before their insurance starts contributing.

Factors Affecting Family Deductibles

Several factors contribute to the increasing cost of family health insurance deductibles:

• Rising Healthcare Costs: As the cost of medical procedures, medications, and hospital stays continues to climb, insurance companies may pass those costs on to consumers in the form of higher deductibles.   
• Shifting Costs to Consumers: To control costs, insurance companies often shift a greater portion of the financial burden onto policyholders through higher deductibles and co-payments.
• Inflation: The overall increase in the cost of goods and services, including healthcare, can drive up deductible costs.   
• Plan Choice: The type of plan you choose can also impact your deductible. High-deductible health plans (HDHPs) often have significantly higher deductibles than traditional plans, but they may have lower monthly premiums.   

The Impact of High Deductibles on Families

High deductibles can have a significant impact on families:

• Delayed Care: Families may delay seeking necessary medical care due to the high cost of deductibles.
• Financial Strain: Unexpected medical expenses can be financially devastating, especially for families with limited savings.   
• Health Disparities: High deductibles can exacerbate health disparities, as low-income families may be less likely to afford necessary care.   

To mitigate the impact of high deductibles, it’s essential to carefully consider your family’s healthcare needs and budget when choosing a health insurance plan. Additionally, exploring options like Health Savings Accounts (HSAs) can help you save money for future medical expenses.