Health Insurance Costs Keep Climbing for American Workers, New Survey Finds

New survey by healthcare research nonprofit KFF shows that employees at small businesses and their employers are facing skyrocketing health insurance costs in 2026. The study, published on Thursday, discovered that covered workers were being charged hundreds of dollars more for their premiums compared to the previous year. Small businesses, with 10 to 99 employees, were bearing a bigger burden of these expenses than larger corporations.

Healthcare costs have become a significant concern for voters in the upcoming midterm elections, with a recent AP-NORC poll indicating that 7 out of 10 registered voters consider healthcare one of the most crucial issues in the election. Roughly 157 million Americans aged below retirement rely on employer-sponsored health insurance coverage.

According to the KFF study, employers report that workers are paying an average of $7,471 annually for family health benefits in 2026, a 9% increase or $621 from the previous year. Matthew Rae, KFF's associate director of the Health Care Marketplace Program, emphasized the issue of affordability. President Donald Trump has attempted to address healthcare affordability in his midterms campaign, proposing prescription drug pricing and rebates for some Americans.

However, other actions taken by Trump's Republican administration have also increased costs for certain individuals, and the survey indicates that many are experiencing rising health insurance expenses without clear benefits enhancements.

Small businesses, responsible for employing approximately 62.3 million people or 45.9% of private-sector workers, are particularly vulnerable to these rising costs. Covered workers at smaller firms contributed an average of $9,687 in 2026 toward family coverage, while those at larger firms paid $6,840. In 2025, the respective figures were $8,900 and $6,200. The study found that employees at smaller firms contributed 37% of the premium for family coverage, whereas larger firms had workers contributing only 25%.

Jenna Caligaris, who manages a contractor with about 25 workers in upstate New York, expressed the pressures small businesses face in balancing attractive benefits for their employees and rising expenses. She mentioned that her firm provides 80% of coverage to nonunion workers, with employees covering the rest. To maintain coverage and remain competitive, Caligaris said her firm has resorted to stretching the lifespan of company vehicles and tools, reducing workers' year-end bonuses, and discontinuing annual company picnics.

In the past three years, Caligaris' company switched insurers to cut costs but is now facing a 25% increase in premiums. KFF's associate director, Rae, noted that small firms commonly face higher deductibles and more market volatility. The KFF annual health benefits survey includes roughly 1,900 employers with 10 or more workers.