Employees with workplace health coverage are paying more toward family plans in 2026, with the average contribution climbing 9% to $7,471.
Because average wages increased only 3.7%, the higher cost is putting added pressure on the more than 150 million Americans insured through their jobs.
Here's what to know
In its annual employer survey released Oct. 22, KFF — the health information nonprofit that includes KFF Health News — found that the average total premium for family coverage through work rose 5% to $28,303, while workers' share grew even faster.
Employers with at least 200 workers were especially likely to shift some of that increase to employees, with 44% reporting that they raised worker contributions.
As Matthew Rae, associate director of the Program on the Health Care Marketplace at KFF, said, "When we start to see higher use or higher prices, there are only a limited number of things employers can do" to try to slow premium increases.
Those moves include changing insurers, requiring preapproval for some services, narrowing provider networks, or raising deductibles.
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Smaller employers stood out for higher cost-sharing in some areas. Companies with fewer than 200 employees had an average individual deductible of $2,624, compared with $1,772 at larger employers. Across all companies, workers covered 27% of family-plan costs and 18% of individual-plan costs.
More background
People who buy coverage on their own are not the only ones facing rising health insurance costs.
That wider impact matters politically: healthcare costs and affordability are major concerns heading into the midterm elections, and employer-sponsored plans cover far more people than Affordable Care Act marketplace plans.
The pressure may also carry into 2027 plans. Consulting firm AON projected a 9.5% increase, Marsh estimated 8.2%, and the Business Group on Health forecast a median 9.2% premium increase.
AON and Marsh pointed to increased medical care use, sharply rising prescription drug costs, and higher hospital prices.
One particularly expensive category is weight-loss drugs. In the KFF survey, 29% of companies said GLP-1 coverage had a "significant" effect on their drug costs.
About 29% of large employers in the KFF survey said they had trouble getting data on what their plans paid for care or how provider prices compared.
What's being done?
Some employers are looking for ways to limit spending without pushing more of the cost onto workers.
Phifer Inc., the Tuscaloosa, Alabama, manufacturer, kept its health costs flat in 2026, according to Russell DuBose, the company's vice president of human resources. He said that likely reflects the company's multiyear focus on no-cost primary care through on-site clinics and direct deals with doctors' offices.
That approach is still uncommon. In the KFF survey, 7% of companies said they had an on-site clinic, while 24% said they had one either on-site or nearby.
Phifer also contracts directly with specialists.
"We steer plan members to the best providers that we can find," DuBose said. "When we do that, we're paying a more reasonable price."
The Business Group on Health has also suggested lower copayments for some providers based on price or quality, similar to "tiered networks," an approach employers and insurers have tried.
Businesses are also using pricing data released under federal rules to contract directly with hospitals and, in some cases, invest in primary care.
Georgetown University health policy researchers have also proposed caps on annual deductibles and hospital prices, along with extending lower Medicare-negotiated drug prices into the private market.
For employers preparing for another costly year, DuBose said, "The worry is 'Could the rising cost of healthcare be the next job killer?'"
Where can I learn more?
This is part of a broader rise in health coverage costs for workers and families. These articles look at national premium hikes, wage pressures, and employee pushback at specific employers and school districts.
• Across the U.S., health care costs near another 10% jump as workers pay more.
• Most Americans face higher health insurance bills next year through work, Medicare, or ACA plans.
• At Starbucks, workers say health insurance premiums have soared, forcing some employees to drop coverage.
• After 2020, U.S. families watched health plans jump as wages fell behind rent and groceries.
• In Bakersfield, California, teachers are rallying over premiums after losing fully paid coverage.
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