Costs for employer-sponsored health care plans increased in 2023, with average premiums jumping almost 7% from 2022 for both individual and family coverage, according to a new study.

The average family coverage premium rose to $23,968 this year, while for single coverage it increased to $8,435, according to the study by KFF, a nonprofit health policy research firm. The jump in average premiums in 2023 comes after minimal increases in premium costs the previous year, the survey found. 

“Rising employer health-care premiums have resumed their nasty ways, a reminder that while the nation has made great progress expanding coverage, people continue to struggle with medical bills, and overall the nation has no strategy on health costs,” KFF President and Chief Executive Officer (CEO) Drew Altman said.

Premiums have climbed roughly in line with inflation growth in recent years. Premium averages increased 22% compared with a 21% rise in overall inflation from 2018 to 2023, according to the report. 

KFF did note that the modest rise in premiums seen in 2022 was “unusual” given the pace of inflation then. This “suggests that the higher overall prices we have seen since 2022 in the rest of the economy have begun to affect premiums,” KFF said.

The KFF report noted that “looking forward, both inflation and employer costs for labor are projected to moderate over the next two years,” but “premiums may not reflect these underlying changes right away.”

Inflation showed a 3.7% annual increase in September, which was below the highs seen in 2022, but still well above the Federal Reserve’s target of 2%.

Health benefit costs for employers are expected to rise in 2024 by an estimated 5.4% per employee, a recent Mercer survey found.