The average annual cost of employer provided health insurance increased 3 percent this year, to more than $18,000.

That’s according to a report from the Henry J. Kaiser Family Foundation.

Three percent is considered a relatively modest increase for health care. It’s lower than last year’s 4 percent and mirrors the recent trend of slower growth.

But 3 percent is still higher than the average wage increase of 2.5 percent  and it’s much higher than inflation, which stands at 1.1 percent.

So to reduce costs, it appears many workers are choosing lower-cost insurance plans that carry higher deductibles.

The report found the average deductible increased 12 percent this year to almost $1,500.