Health Insurance Costs Surge Again, Threatening Affordability for American Worker

In partnership with

Employer-sponsored health insurance costs surged again in 2025, with premiums nearing $27,000 per family plan and deductibles climbing sharply—signaling a worsening financial burden for workers.

The average annual premium for family coverage reached $26,993, marking a 6% increase from the previous year—more than twice the rate of inflation. This is the third consecutive year of steep hikes, following 7% increases in both 2023 and 2024. Workers now contribute an average of $6,850 toward these premiums, while employers cover the remainder.

Transform Your Bedroom Fun With Legal THC Gummies

Imagine feeling every touch magnified, every kiss electrified, and every encounter intensified beyond what you ever thought possible.

Every. Single. Time.

Made from 100% federally legal THC and delivered quickly and discreetly to your door within days, Mood’s strawberries & cream flavored Sexual Euphoria THC gummies can help ignite your bedroom fun starting in just 15 minutes flat…

Because they’re made with nano-emulsion (rapid-onset) technology, they “kick in” within 15 minutes – transforming ordinary encounters into extraordinary sensual adventures.

The secret? A pleasure-amplifying combination of THC and time-tested botanicals designed to work for ALL bodies (not just men).

“These do what they claim! Ask my hubby. I don’t think he will let me run out of these gems. And they taste really good.” – Deanne D.

Best of all, they arrive in unmarked packaging that won't raise eyebrows – your under-the-sheets activity remains your delicious secret (unless you choose to share it).

20% OFF your first order!

The underlying causes of this escalation are deeply concerning. Employers cited rising prescription drug costs—especially for GLP-1 medications like Wegovy and Zepbound—as a major driver. Among large firms (200+ employees), over a third said drug prices contributed “a great deal” to premium increases. The adoption of GLP-1 coverage is accelerating: 43% of firms with 5,000+ employees now include these drugs in their largest plans, up from 28% in 2024.

Other contributors include chronic disease prevalence, increased use of medical services, and hospital pricing. These factors are compounding the financial strain on both employers and employees. KFF President Drew Altman warned that “a quiet alarm bell” is sounding, with expectations of even sharper premium increases in 2026 due to hospital costs, tariffs, and expanding drug coverage.

Beyond premiums, deductibles are also rising. The average individual deductible now stands at nearly $1,900, up from $1,773 last year. Workers at small firms face even harsher conditions, with deductibles averaging $1,000 higher than those at larger companies. Alarmingly, more than half of small-firm employees now face deductibles of at least $2,000, and over a third face deductibles of $3,000 or more.

KFF anticipates that employers—lacking effective tools to curb rising costs—will continue shifting more financial responsibility onto workers through increased deductibles and cost-sharing. This strategy, while unpopular, is becoming a default response to unsustainable premium growth.