U.S. employer family health premiums climb to $28,300 as costs rise faster than pay

Paycheck deductions do not show the full price of coverage.

New survey data show that annual premiums for employer-sponsored family health insurance have climbed to roughly $28,300.

Even when coverage comes through an employer, rising premiums can still strain household budgets if wages do not keep up.

Key details

In a TikTok video, Sarah (@econwithsarah), who holds a Ph.D. in economics and describes herself as a health economist, cited figures from KFF's Employer Health Benefits Survey.

The KFF survey puts average annual premiums at about $9,800 for individual coverage and $28,300 for a family of four. Those numbers represent the total cost of coverage, not necessarily the amount workers pay out of pocket, since employers and employees split the expense.

Sarah said premiums were 5% higher than the previous year, compared with inflation of about 2.7% and wage growth of roughly 3.7%.

Worker premium contributions have also risen faster. According to the breakdown, those payments increased 26% between 2021 and 2026, compared with 12% from 2016 to 2021.

TCD Picks » Quince Spotlight

💡These best-sellers from Quince deliver affordable, sustainable luxury for all

The video centered on coverage for 2026, while noting that the overall cost picture for the following year was still unclear.

More context

Copays are the charges tied to covered services, while deductibles are the amounts patients must pay before certain insurance benefits begin. Sarah said employers have raised both.

Based on the video's survey summary, the share of workers enrolled in plans with deductibles of at least $2,000 rose from 34% to 38%. Premium increases were also steeper in the Northeast and at smaller businesses, she said.

Employers pointed to higher medical costs, including cancer treatment and weight-loss medications, as factors behind the increases.

Viewers responded with frustration about their own plans and recent changes.

"Employee-sponsored insurance over here. 100% price increase from June 2025 to July 2026," one commenter wrote.

What can be done?

For workers trying to understand the real cost of employer-sponsored coverage, one commenter suggested looking at a tax form.

"It's on your W2, box 12, code DD," the commenter wrote. Paycheck deductions alone do not reflect the full cost of coverage.

For patients who need ongoing care, losing insurance can disrupt regular appointments and continuing treatment, the video warned. Sarah said there is no easy fix for affordability and did not present dropping coverage as a solution.

She also said the uninsured rate rose from 8.9% to 11.2%, tying the increase in part to the expiration of enhanced Affordable Care Act subsidies and tighter Medicaid rules.

She ended the video with a broader question about healthcare reform and the risk of disrupting care for people who depend on it.

Where can I learn more?

Higher premiums are putting pressure on workers' and retirees' budgets.

• Most Americans face higher health insurance bills across several types of coverage.

• Starbucks workers say premiums have soared, pushing some employees to drop their health coverage.

• California teachers who once had fully paid coverage are rallying over health premiums.

• U.S. federal retirees face $10,000 family premiums, with some considering ACA subsidies for coverage.