The cost of employer-sponsored health insurance in Oregon has reached unprecedented levels, intensifying financial pressures on families already struggling with escalating healthcare expenses. According to a recent report from the State Health Access Data Assistance Center at the University of Minnesota, the average annual premium for family coverage surged to $24,688 in 2024, while individual coverage averaged $8,400 per employee. Both figures mark the highest on record for the state since data collection began in 2002.
Analysts note that these figures reflect a broader national trend, as rising healthcare costs are increasingly passed on to workers. Across the United States, average family premiums for employer-sponsored insurance rose to $24,540 in 2024, up 2.5% from the previous year, while individual premiums climbed 3.7% to $8,486. Oregon’s premium increases were notably higher — 8.3% for family coverage and 5.3% for individual coverage — although still below the extreme spikes seen in states like Delaware, where family premiums soared nearly 26% to almost $28,000.
Approximately 1.8 million Oregonians, roughly half of the state’s population, depend on employer-provided health insurance, which remains the most common form of coverage nationwide. Elizabeth Lukanen, director of the Minnesota centre, emphasises that although employer-sponsored insurance continues to be widespread, it is “becoming increasingly unaffordable for both employers and employees.” She stresses that any efforts to address the nation’s growing healthcare affordability crisis must include employer-sponsored coverage as a key component.
Rising hospital charges, higher prescription drug costs, and increasing demand for medical services continue to drive premiums upward, according to Andrea Stewart, a research fellow at the centre. Deductibles — the out-of-pocket expenses employees must pay before insurance coverage begins — have risen even faster. In Oregon, the average family deductible reached nearly $4,000, with individual plans just under $2,000, reflecting a growing shift towards high-deductible health plans. While these plans offer lower monthly premiums, they expose employees to potentially significant costs in the event of medical emergencies.
Stewart notes that more than half of American workers with employer-sponsored insurance now participate in high-deductible plans, with Oregon slightly below the national average. “Lower premiums may appear attractive, but they carry serious financial risk,” she warns. Rising out-of-pocket costs are already causing Oregonians to delay or forgo necessary care. A recent survey by the Oregon Health Authority found that 15% of residents postponed medical treatment, and around 12% exhausted most or all of their savings due to medical bills.
These findings underscore that even in comparatively well-performing states, the rising cost of employer-sponsored insurance is significantly affecting household budgets, employee wages, and long-term financial security, leaving families increasingly vulnerable in the face of medical emergencies.