Employer-Provided Family Health Insurance Premiums Rise 6% to $27,000 in 2025

In 2025, premiums for employer-provided family health insurance plans rose 6% to nearly $27,000, continuing a trend of significant increases over the past three years, according to a KFF survey of over 1,800 employers. This increase outpaces both inflation and wage growth, with premiums up 26% over five years compared to 2.9% inflation and 29% wage growth. The rising costs are driven largely by expensive brand-name prescription drugs, including weight-loss and diabetes medications like GLP-1 drugs from Eli Lilly and Novo Nordisk, which many employers have increasingly covered despite their high prices. Employers anticipate even higher premium hikes in 2026, potentially as much as 9%, with cost-sharing measures such as higher deductibles possibly being implemented. The high cost burden affects more than 154 million Americans covered by employer plans, with some workers declining coverage due to costs. President Trump is applying pressure on drug manufacturers to reduce prices, using tariffs as a policy tool to address these escalating healthcare expenses.