Workers paying nearly 10% more for family premiums on employer health insurance: KFF

Workers are paying nearly 10% more for their premiums under employer-sponsored health insurance, a new KFF survey finds.

The survey found workers are paying $7,471 annually on average for a family of four this year, which is an increase from $6,211 in 2025.

The average contribution amount for workers at smaller employers was higher than at larger employers, according to the survey published Thursday.

"The average worker now is paying over $7,000 for a family of four; that's a ton of money for many households," Matthew Rae, associate director of the healthcare marketplace program at KFF, told ABC News. "And a 9% increase indicates a big increase in spending by workers who can afford family health insurance premiums. It really taps into issues of affordability for many."

"Even those with relatively generous employer plans often have trouble affording their premium contributions or cost-sharing that's required in the plan," he added.

On average, overall premiums, including the shares covered by employers, have risen 5% from 2025 to $28,303.

During the same period, wages rose 3.7% and general inflation rose 2.7%. Rae said that an increase of 5% is a "modest number," on par with inflation and wages over a five-year period.

"So, we're in this sort of prolonged period of relatively modest premium growth," he said. "Now, I don't think that comes as much of a relief for many employers or employees who have to finance those premiums. Health insurance premiums are extraordinarily expensive, so a small increase and a big number is still a lot of money."

"So, family health insurance premiums top $28,000 -- and basically the cost of a new car -- just to cover four people," he added.

The survey also found there was limited coverage for GLP-1s for weight loss on employer insurance plans. About one in five large companies covered drugs specifically for weight loss, and often with restrictions such as requiring participation in a lifestyle program or meeting with a clinician.

Most companies covering weight loss drugs described their impact on prescription drug spending as "significant" (29%) or "moderate" (27%).

"Tens of millions of Americans, up to 44% of Americans who have a job-based plan, have a condition which would indicate them for GLP-1 use," Rae said. "High spending on GLP-1s can generally increase premiums overall, further exacerbating access issues."

However, he said coverage of GLP-1s raises the satisfaction of the plan for workers and their dependents.

"So, how employers balance those costs with the demands of their employees is a real challenge," Rae said. "I think employers are continuing to think of ways in which they can cover these benefits, make their health benefits valuable to their employees, but also make them affordable. There's a central trade-off here between what health plans cover and how much they cost."