Americans Are Paying More for Health Insurance They Have Not Used

American workers are facing higher employer-sponsored health insurance costs in 2026, with newly released data showing family coverage premiums are climbing faster than wages and inflation.

According to a survey released by KFF, the health policy research organization, workers are now paying an average of $7,471 a year toward family health insurance premiums. That is up 9% from $6,850 in 2025. The increase of $621 works out to about $52 more each month taken from paychecks before families pay for doctor visits, prescriptions or other medical expenses.

The average annual premium for employer-sponsored family coverage has risen to $28,303 in 2026, a 5% increase from the previous year, the survey found. That outpaced both 3.7% wage growth and 2.7% inflation over the same period.

Employees usually cover only part of the premium, with employers paying the rest. Even so, workers are bearing a growing share of the burden as businesses deal with higher health care costs.

Among large employers, 44% said they raised the share of premiums paid by workers in response to expected cost increases, according to KFF. Another 21% increased deductibles or other out-of-pocket costs for most medical services.

The pressure is even greater for employees at smaller companies.

At firms with 10 to 199 workers, employees contributed an average of $9,687 a year toward family premiums, compared with $6,840 at larger employers. Nearly one-third of covered workers at smaller firms were in plans that required them to pay more than half of the total family premium.

These costs come before any care is received.

For workers with single coverage and a general annual deductible, the average deductible reached $1,955 in 2026, according to the survey. Of those workers, 38% were enrolled in plans with deductibles of at least $2,000, leaving many with substantial expenses before insurance pays for most services.

For employees paid every two weeks, the average annual contribution toward family coverage comes to roughly $287 per paycheck. That does not include deductibles, copayments or other medical spending.

The increase is especially significant as workers enter open enrollment, when many choose health insurance for the coming year.

The higher costs also come as Americans buying coverage outside the workplace face steeper premiums after Congress did not renew enhanced Affordable Care Act premium tax credits that expired at the end of 2025. Those subsidies had helped millions afford plans on the law’s insurance marketplaces.

According to KFF, the expiration is expected to raise premium payments for subsidized marketplace enrollees by an average of 114%, or about $1,016 a year. Those subsidies apply to marketplace plans, not most employer-sponsored coverage, so the two groups are dealing with separate financial pressures.

Employer-sponsored insurance covers nearly 157 million Americans under age 65, making workplace benefits a major part of household budgets.

Over the past decade, average family premiums have increased 55%, compared with a 50.1% rise in wages and 37.9% inflation, KFF said.

More increases may be on the way. KFF cautioned that early projections for 2027 suggest premium growth could approach double digits, potentially forcing employers to decide whether to absorb the added cost or pass more of it to workers.