Families are paying nearly $7,500 a year for health insurance. The next price hike is already looming.
Premiums for family health insurance plans were over $28,000 in 2026, and costs are likely only going up.
Health insurance premiums have skyrocketed for both workers and employers. In 2026, workers on family health insurance plans paid $7,471 for premiums, a 9% increase from 2025. Smaller businesses faced even higher costs, with workers paying nearly $10,000 for family premiums. This growing expense has outpaced wage growth, and more hikes are expected in 2027.
A KFF health benefits survey in 2026 revealed that workers on family plans paid an average of $7,471 annually in premiums, a 9% rise from the previous year. When employer contributions are included, family plan premiums totaled $28,303 in 2026, a 5% increase from 2025. Smaller firms, often reliant on insurance companies due to lack of bargaining power, spent nearly $10,000 on family premiums in 2026.
Despite wages increasing 3.7% year-over-year, worker-paid premiums grew by a steeper 9%, consuming a larger portion of household income. A PwC analysis projects a 9% rise in commercial healthcare group costs in 2027, while Aon forecasts a 9.5% increase without cost mitigation measures. This financial strain poses a challenge for both employers and workers, who may face limited wage increases amid rising care costs.
A recent Ipsos/Axios poll found that 69% of Americans believe a 10% premium increase would negatively impact their household finances, with 30% deeming it a major setback.
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