Workplace-Based Health Insurance Costs Rise in the US

According to a report published by healthcare organization KFF, employer-sponsored health insurance costs in the US have risen, with the average annual employee contribution for family coverage increasing by 9% to reach $7,471.

Increase in Premiums and Contribution Shares

According to KFF data, the average premium for employer-covered family coverage rose 5% to $28,303. The annual average contribution paid by employees for family insurance increased by 9% to $7,471. During this period, employees' average earnings rose by 3.7%, while general inflation increased by 2.7%.

44% of large companies with 200 or more employees increased the insurance share paid by employees in response to rising costs. In the system covering more than 150 million workers, employees at small companies paid an average deductible of $2,624 on individual plans, while this amount remained at $1,772 at large companies.

Causes of Cost Increase and Future Expectations

Prescription drugs, hospital fees, and increased service utilization are driving up costs. 29% of companies reported that GLP-1 weight-loss drugs had a significant impact on costs. Consulting firms and industry groups project additional premium increases of between 8.2% and 9.5% for 2027.

To offset rising expenses, companies are resorting to methods such as raising deductibles, requiring prior authorization for services, or contracting directly with healthcare providers. For example, 9% of companies with 50 or more employees source prescription drugs from outside the US to lower costs.