Average family employer-based insurance plan jumps another 6%, hits $27K

The average premium for employer-sponsored family coverage has risen by more than 6% for three consecutive years, marking the first time that has happened in two decades, new analysis from KFF has found (Source: “A New Car vs. Health Insurance? Average Family Job-Based Coverage Hits $27K,” KFF Health News, Oct. 22).
 
With the federal shutdown entering its fourth week, spurred by a stalemate over the cost of health insurance for 22 million Americans on Affordable Care Act plans, the new KFF report shows that over 154 million people with coverage through an employer also face steep price hikes — and that the situation is likely to get worse.
 
Premiums for job-based health insurance rose 6% in 2025 to an average of $26,993 a year for family coverage, according to an annual survey of employers released Oct. 22 by KFF. Over the last five years, the average premium for family coverage has increased by 26%, compared with a 29% increase in workers’ wages and nearly 24% growth in inflation.
 
Rising drug and hospital costs are often cited as major culprits for rising health insurance costs, and neither shows signs of ebbing.
 
“Early reports suggest that cost trends will be higher for 2026, potentially leading to higher premium increases unless employers and plans find ways to offset higher costs through changes to benefits, cost sharing, or plan design,” the KFF survey said.