Health Care Spending for People with Employer-Sponsored Insurance Reached $6,743 Per Person in 2023

New HCCI report reinforces rising prices, not greater use of care, drives spending growth and affordability pressures

WASHINGTON, Oct. 13, 2026 /PRNewswire/ -- Health care spending for people with employer-sponsored insurance reached $6,743 per person in 2023, according to the nonprofit Health Care Cost Institute's latest Health Care Cost and Utilization Report. Per-person spending rose 18.8% from 2019 to 2023, with higher prices, not greater use of care, driving most of the increase.

From 2022 to 2023, spending per person grew 6.5% while utilization was essentially flat. Average prices rose 6.7% that year, continuing a five-year pattern of annual price growth.

"Prices are the primary force behind high health care costs," said Katie Martin, HCCI president and CEO. "Employers, policymakers and other decisionmakers need to focus on price growth to make care more affordable for people and families with job-based coverage."

HCCI analyzed spending, utilization, and prices from 2019 through 2023 for people younger than 65 with employer-sponsored insurance. Nearly half of Americans get coverage through an employer, making these trends central to discussions about affordability, premiums and out-of-pocket costs.

Key findings from the 2023 report include:

• Per-person health care spending averaged $6,743 in 2023 with $923 of that coming from consumers' out-of-pocket spending.
• Spending per person grew 18.8% from 2019 to 2023, an increase of $1,068 per person over five years.
• Average health care prices rose 17.7% from 2019 to 2023, while overall utilization increased only 1.8%.
• Hospital facility costs made up more than 46% of per person spending - $3,100 of the $6,743 in per person spending.
• GLP-1 medications were the fastest-growing prescription drug spending category, with annual gross spending increasing more than fourfold from $45 per person in 2019 to $197 in 2023.

Prescription drugs were a major driver of overall spending growth. Gross point-of-sale prescription drug spending increased $460 per person over five years, the largest dollar increase among the major service categories. HCCI notes 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.

About the Health Care Cost and Utilization Report
The 2023 Health Care Cost and Utilization Report is based on medical and prescription drug claims for people younger than 65 with employer-sponsored insurance. HCCI analyzed spending, utilization and prices from 2019 through 2023 across inpatient facility, outpatient facility, professional services and prescription drugs. Because comprehensive claims-based analyses require time to collect, validate and analyze data across millions of covered lives, the report provides one of the most complete views available of recent spending and price trends in employer-sponsored insurance. Prescription drug spending reflects gross point-of-sale payments and does not include manufacturer rebates.

Read the 2023 Health Care Cost and Utilization Report.

About Health Care Cost Institute
Celebrating its 15^th anniversary, the Health Care Cost Institute (HCCI) 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, HCCI 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. To learn more, visit healthcostinstitute.org and connect on LinkedIn.

Media contact: Cary Conway
[email protected]

SOURCE Health Care Cost Institute