Employer-sponsored health insurance costs rose again in 2026, with family premiums hitting $28,303 — a 5% jump — according to KFF's annual survey. Workers are feeling the pinch more acutely, with their contributions to family coverage rising 9%, far outpacing wage growth of 3.7%. Employers are working hard behind the scenes to keep increases from being even steeper.
Employer-sponsored health insurance got pricier in 2026, but not as catastrophically as some had feared. KFF's annual Employer Health Benefit Costs Survey — which polled nearly 2,000 public and private employers — found that average family premiums rose 5% to $28,303, while individual premiums climbed to $9,804. The increases outpaced both wage growth (3.7%) and inflation (2.7%), putting a real squeeze on workers' budgets.
The bigger story for employees is the 9% spike in their out-of-pocket premium contributions for family coverage, now averaging $7,471 annually. Employers, however, are keeping deductibles relatively flat (averaging $1,955 in 2026) and experimenting with variable copayment models to manage costs without dramatically shifting the burden onto workers.
By the Numbers:
Why it matters: These numbers signal that employer-sponsored insurance — still the backbone of U.S. healthcare coverage — is under sustained financial pressure. With worker contributions rising nearly three times faster than wages, affordability concerns are mounting, even as employers scramble to soften the blow through benefit redesign and smarter vendor negotiations.
