"KFF, a health research group, released an employer survey showing average family premiums rose about 6% in 2025 to roughly $26,993, with workers contributing about $6,850 toward the total. Employers cite prescription drugs, chronic disease, and elevated utilization as the leading cost drivers, according to a New York Times report of the survey. The five-year increase now totals approximately 26%, and preliminary indicators suggest another upward trend in 2026, absent meaningful cost containment."
"Several forces are converging: higher hospital prices, persistent inflation in provider labor, and heavier use of services as care deferred during the pandemic comes back online. A growing share of spending is tied to high‑cost drugs, including GLP‑1s for weight loss and cardiometabolic risks, which many employers covered in 2025 but may curb as budgets tighten. Consolidation among health systems has strengthened negotiating leverage on rates, while improved access via virtual care has increased utilization, especially in behavioral health."
Average family premiums increased about 6% in 2025 to roughly $26,993, with workers contributing about $6,850. The five-year premium rise now totals roughly 26%, and indicators point toward further increases in 2026 without meaningful cost containment. Employers identify prescription drugs, chronic disease, and elevated utilization as primary cost drivers. Higher hospital prices, persistent provider labor inflation, and care deferred during the pandemic returning to the system are raising spending. A growing share of costs is tied to high-cost drugs such as GLP-1s, and employers may curb coverage. Consolidation and expanded virtual care have increased utilization and negotiating leverage, intensifying budget and household strain.
Read at Fortune
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