Employer-sponsored health insurance costs rose for a third straight year in 2025, with average family premiums approaching $27,000, according to KFF’s annual Employer Health Benefits Survey released on Wednesday.
Premiums Outpace Inflation As Workers Shoulder More
The average family premium reached $26,993, up 6% by $1,408 from 2024, outpacing overall inflation and matching the brisk increases of the prior two years. On average, workers contributed $6,850 toward those family premiums, with employers covering the remainder, according to KFF.
The survey, based on responses from more than 1,800 employers of varying sizes, offers a snapshot of job-based coverage that insures roughly 154 million Americans under age 65.
Drug Costs, GLP-1s Drive Higher Employer Spending
KFF attributed premium growth primarily to higher health spending and noted that employers increasingly cite prescription drug costs as a major driver of this growth. Among large firms with at least 200 workers, more than a third said prescription drug prices contributed
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