Family Health Insurance Premiums Reach Record High for Americans

For the vast majority of American workers under 65, receiving health insurance through their employer has become a significant financial burden, with family premiums climbing to an average of $27,000 this year. Employers are taking on three-quarters of the cost, but workers are left to shoulder the remaining burden, including sharp increases in deductibles and out-of-pocket expenses. As a result, many employees are forced to contribute nearly $600 per month towards family coverage, with some facing deductibles in the thousands of dollars if they become seriously ill or experience an accident.

Key Takeaways:

• Family health insurance premiums for American workers under 65 reached an average of $27,000 in 2025, with little relief expected in 2026.
• Employers cover about three-quarters of the cost, but workers are increasingly sharing the burden, with sharp increases in deductibles and out-of-pocket expenses.
• Employees are contributing nearly $600 per month towards family coverage, with some facing deductibles of thousands of dollars in case of illness or accident.
• The survey found that 43% of large employers cover GLP-1 weight loss drugs, with 28% of employers providing coverage last year.
• Nearly half of workers that take the GLP-1 medications are significantly contributing to higher drug costs, with companies imposing eligibility requirements to limit prescription lengths.
• Small employers are increasingly dropping health benefits, with only 54% of small businesses with 10-49 workers providing coverage in 2025.
• Small employers are experimenting with non-traditional forms of coverage, with 37% participating in level-funded plans.
• Plans sold under the Affordable Care Act are particularly attractive to workers at small businesses, with about half of the people enrolled either working for small businesses without coverage or being self-employed.

Statistics:

• The average family health insurance premium for American workers under 65 reached $27,000 in 2025, with a contribution requirement of $6,850 towards family coverage.
• The cost of employer coverage rose sharply in 2025, with a 10% increase in median household income taken up by combined premiums and deductibles for family coverage in 2023.
• Half of the people enrolled in plans sold under the Affordable Care Act either work for small businesses that may not offer coverage or are self-employed.
• About half of large employers with workforces of 5,000 or more cover the popular GLP-1 weight loss drugs, with a significant increase in coverage from 28% last year.
• More than a quarter of workers in small businesses contribute at least $12,000 annually towards premiums for family coverage.
• Over 50% of workers in small businesses have annual deductibles of $2,000 or more.

Sources:

• KFF (Kaiser Family Foundation) survey released in 2025
• Commonwealth Fund analysis in 2023
• Drew Altman, KFF chief executive, in a column accompanying the survey
• Paul B. Ginsburg, professor of health policy at the University of Southern California
• Gary Claxton, senior vice president at KFF
• Sara R. Collins, senior scholar at the Commonwealth Fund and author of the report.