Annual premiums for employer-sponsored family health coverage reached $28,303 in 2026, up 5% from last year, according to KFF’s 2026 Employer Health Benefits Survey, released Oct. 22.
Workers contributed an average of $7,471 toward family premiums, up 9% ($621) from 2025. Total family premiums, including employers’ contributions, increased by $1,310.
The premium increase outpaced wage growth (3.7%) and general inflation (2.7%). Annual premiums for single coverage rose 5% to $9,804.
“We have been hearing a lot about Affordable Care Act and Medicaid cuts. Now add a 9% increase in what workers with employer coverage paid toward family premiums in 2026 to the reasons voters are so concerned about their health care costs,” KFF President and CEO Drew Altman said in a statement.
WHY THIS MATTERS
Employers are responding to projected cost increases by changing what workers pay and how their plans operate.
Among large firms offering health benefits, 44% increased employees’ share of premiums and 21% raised deductibles or other cost sharing for most services.
Sixteen percent changed insurers or plan administrators, while 10% added utilization management requirements for certain services, such as prior authorization.
Workers at small firms faced a particularly heavy burden. Their average annual contribution for family coverage was $9,687, compared with $6,840 at larger firms, a difference of $2,847.
Nearly one-third of workers at small firms were enrolled in plans that required them to pay more than half the family premium, compared with 6% at larger firms. KFF defines small firms as having 10 to 199 workers and large firms as having at least 200.
Deductibles added to workers’ costs. Among employees with a general annual deductible for single coverage, the average was $1,955, statistically similar to last year. The average was $2,624 at small firms and $1,772 at larger firms.
The findings are based on interviews with 1,937 non-federal public and private employers conducted from January to July 2026.
Employer-sponsored insurance covers nearly 157 million people under 65.
THE LARGER TREND
The findings come as employers prepare for further increases in 2027.
Preliminary Marsh survey findings showed that employers expect health benefit costs to rise 8.2% per employee next year.
That estimate includes planned cost-control changes; without those measures, respondents projected an 11% increase.
Separately, small-group health insurers sought a median premium increase of 14% for 2027, citing rising medical costs, specialty drugs and changes in the risk pool. Those filings concern proposed rates rather than final premiums.