The Quiet Budget Destroyer
Healthcare inflation doesn't make headlines the way egg prices do, but it's arguably the most consequential cost increase facing American families. The average employer-sponsored family health plan now costs over $24,000 per year in total premiums (employer + employee share). The employee portion alone averages $6,500-$7,000 annually — before you spend a single dollar on actual care.
Deductibles have risen even faster than premiums. The average individual deductible on employer plans has climbed from $1,400 in 2019 to roughly $1,750 today. For many workers on high-deductible plans, it's $2,500-$5,000. This means families are paying more in premiums AND more out-of-pocket before insurance kicks in.
The Drug Price Problem
Prescription drug costs remain a major driver. While the Inflation Reduction Act capped some Medicare drug prices, the broader market continues to see 5-8% annual increases on brand-name medications. GLP-1 drugs (Ozempic, Wegovy) have become a $50+ billion market, and their costs are rippling through insurance premiums for everyone. A single drug class is measurably impacting premiums.
For households, healthcare inflation is uniquely painful because it's largely non-discretionary. You can eat out less or skip a vacation, but you can't skip your blood pressure medication or your child's asthma inhaler. The squeeze between rising premiums, higher deductibles, and stagnant wages is the defining healthcare story of this era.