Health Care Spending Soars for Job-Based Insured Workers

WASHINGTON, Oct. 13, 2026 /CourierPR/ -- In 2023, health care spending for individuals with employer-sponsored insurance reached $6,743 per person, according to the Health Care Cost Institute's latest Health Care Cost and Utilization Report. This report, released by the nonprofit organization, highlights a significant increase in per-person spending, which rose 18.8% from 2019 to 2023. The report attributes this increase to higher prices rather than an increase in the use of care, a trend that has persisted over the past five years.

The Health Care Cost and Utilization Report analyzed spending, utilization, and prices from 2019 through 2023 for people younger than 65 with employer-sponsored insurance. This data is crucial for understanding affordability issues and trends in the health care system, especially for those with job-based coverage.

In 2023, the average per-person health care spending was $6,743, with $923 of that amount coming from consumers' out-of-pocket spending. Over the five-year period, spending per person grew by $1,068, representing a 18.8% increase. This growth was driven by a 6.5% increase in spending per person from 2022 to 2023, while utilization remained essentially flat.

The report also noted that average prices rose 6.7% in 2023, continuing a five-year pattern of annual price growth. This price increase is the primary factor behind the high costs of health care, according to Katie Martin, the president and CEO of the Health Care Cost Institute. Martin emphasized the need for employers, policymakers, and other decision-makers to focus on price growth to make care more affordable for individuals with job-based coverage.

The Health Care Cost Institute's analysis revealed that hospital facility costs made up more than 46% of per-person spending, with $3,100 of the $6,743 in per-person spending attributed to these costs. Prescription drugs were a major driver of overall spending growth, with gross point-of-sale prescription drug spending increasing by $460 per person over the five-year period. The report noted that these figures do not include manufacturer rebates, which may reduce net spending but are not consistently available in claims data.

Out-of-pocket spending increased more slowly than total spending, rising 10.3% from 2019 to 2023. Average out-of-pocket spending was $923 per person in 2023, with professional services accounting for nearly half of patient spending across the five-year period.

The Health Care Cost Institute, celebrating its 15th anniversary, is a non-profit, independent research group dedicated to providing comprehensive data and clear analysis on trends in health care spending among commercially insured individuals. Since 2011, the institute has been a trusted resource for researchers, policymakers, and journalists, leveraging proprietary datasets to promote transparency and improve understanding of the U.S. health care system.