Particle.news
Download on the App Store

Employer Family Health Premiums Hit $26,993 in 2025 After 6% Rise, KFF Survey Finds

Escalating drug prices plus higher hospital charges strain employer plans, prompting warnings of steeper 2026 premiums.

Overview

  • Workers now contribute an average of $6,850 toward family coverage, with the total premium averaging $26,993 after a 6% year-over-year increase.
  • Over five years, family premiums rose about 26% and workers’ contributions 23%, roughly tracking inflation and wage growth over the same period.
  • Employers cite prescription drugs and hospital prices as key cost drivers, and insurers’ double-digit rate requests in other markets signal the risk of larger increases next year.
  • Coverage of GLP-1 weight-loss drugs expanded at the biggest firms to 43% of large plans, yet most report costs exceeded expectations and many are tightening access.
  • Cost-sharing continues to shift to workers, with 29% enrolled in HSA-eligible high-deductible plans and an average single deductible of $1,886, while small-firm workers face higher deductibles and part-time and low-wage workers are less likely to get employer coverage, leaving Medicaid to fill some gaps.