U.S. Workers Face Higher Health Plan Costs Next Year

About 157 million Americans receive health insurance through work, and their premiums could rise by as much as 9.5% in 2027. Employer-sponsored family coverage averaged $28,303 this year, 5% above the 2025 level. Employees paid roughly $7,470 annually on average, representing a 9% year-over-year increase. For local renters, homeowners and parents covered through an employer, those increases can put more pressure on household budgets.

Workers have continued to cover about one-quarter of family-plan premiums even as wages, inflation and insurance costs moved at similar rates during the past five years. As insurance became more expensive, 44% of large employers offering health benefits raised the amount employees contributed. Healthcare spending produced 91% of average premium growth from 2011 through 2024. Experts pointed to high provider prices, increased use of care, hospital and physician-practice consolidation, tariffs and energy expenses. More than 1,000 hospital combinations occurred from 2002 through 2020, while the Federal Trade Commission acted in 13 cases.

Prescription medicines are another factor. Use was higher in 2025 than in 2019, and newer specialty drugs can carry substantial prices. GLP-1 medications remain under patent and are widely sought, but fewer than one-fifth of companies employing at least 200 people cover them for weight loss. Coverage rises to about one-third among employers with 5,000 or more workers. At those largest firms, 93% said the drugs had a moderate or significant effect on prescription spending. U.S. patent expirations begin in 2032, although newer GLP-1 treatments may continue adding costs.