KFF says workers are paying a bigger share of employer health insurance

Family coverage now costs employees about $623 per month on average

• Workers’ yearly contributions for family health insurance climbed 9% in 2026 to an average of $7,471.

• Total family premiums, including employer contributions, averaged $28,303, rising faster than wages and inflation.

• Employees at smaller companies face much higher family premium payments and deductibles than workers at larger firms.

Americans who receive health coverage through their jobs are seeing more of their pay go toward insurance, according to KFF’s Employer Health Benefits Survey.

This year, workers paid an average of $7,471 toward family premiums, up $621 from the previous year. When employers’ contributions are included, annual family premiums reached $28,303, an increase of 5%. That outpaced wage growth of 3.7% and inflation of 2.7% over the same period.

That employee share comes to about $623 a month, before deductibles, copays and other medical charges are added in.

The impact is especially sharp at smaller businesses. Workers at companies with 10 to 199 employees paid an average of $9,687 a year for family coverage, compared with $6,840 at larger employers, a gap of nearly $2,850 annually.

Employers shifting more costs

Businesses are reacting to rising health costs by passing part of the expense on to workers. Among firms with at least 200 employees that offer health benefits, 44% raised workers’ share of premiums because of expected cost increases. Another 21% increased deductibles or other forms of cost sharing for most services.

Premiums are only one piece of what workers may owe. For employees enrolled in plans with a general annual deductible, the average deductible was $1,955. At smaller firms, the average was $2,624, compared with $1,772 at larger companies.

Overall, 38% of covered workers were in plans with individual deductibles of at least $2,000.

The survey also found that coverage for GLP-1 drugs mainly used for weight loss remains limited. Among employers with at least 200 workers that offer health benefits, 18% covered those medications. Of the employers that did cover them, 40% required participation in a lifestyle program or meetings with a dietitian, case manager or therapist.

It pays to compare plans carefully

For workers reviewing benefits during open enrollment, the findings show why it is important to look at total expected costs. A lower paycheck deduction can come with a higher deductible or greater charges when care is needed.

Employees can use each plan’s benefits summary to compare premiums, deductibles, prescription coverage and out-of-pocket limits, and should also check whether their doctors and hospitals are in network. Couples with access to two workplace plans should compare the cost of covering everyone under one plan versus enrolling separately.

KFF’s survey included 1,937 interviews with private and nonfederal public employers. Employer-sponsored insurance covers nearly 157 million Americans under age 65.