Americans Are Paying Hundreds More For Health Insurance They Haven’t Even Used

American workers are paying hundreds of dollars more for employer-sponsored health insurance in 2026, with data released Thursday showing the cost of family coverage rising faster than wages and inflation.

Workers now contribute an average of $7,471 annually toward family health insurance premiums, a 9% increase from $6,850 in 2025, according to a survey published by health policy research organization KFF. The additional $621 amounts to roughly $52 more per month in insurance costs deducted from workers’ paychecks, reducing take-home pay before families spend anything on doctor visits, prescriptions or other medical expenses.

The average annual premium for employer-sponsored family coverage reached $28,303 in 2026, up 5% from 2025, the survey found. That increase outpaced both the 3.7% growth in workers’ wages and the 2.7% rate of inflation measured over the same period.

Workers typically pay only a portion of their insurance premiums, with employers covering the remainder. However, the financial burden is increasingly falling on employees as businesses confront higher health care costs.

Among large employers, 44% reported increasing the share of insurance premiums paid by workers in response to anticipated cost increases, according to KFF. Another 21% increased deductibles or other out-of-pocket costs for most medical services.

The financial strain is particularly pronounced among employees of smaller businesses.

Workers at firms with ten to 199 employees contributed an average of $9,687 annually toward family insurance premiums, compared with $6,840 at larger companies. Nearly one-third of covered workers at smaller firms were enrolled in plans requiring them to pay more than half the total premium for family coverage.

Those expenses come before employees receive medical treatment.

The average deductible for workers with single coverage who face a general annual deductible reached $1,955 in 2026, according to the findings. Among those workers, 38% were enrolled in plans with deductibles of at least $2,000, meaning many face substantial additional expenses before their coverage pays for most services.

For employees paid every two weeks, the average annual contribution toward family coverage translates to approximately $287 per paycheck. That figure excludes deductibles, copayments and other medical expenses.

The rising costs are particularly consequential as workers enter the annual open enrollment period, when many employees select health insurance coverage for 2027.

The increase also coincides with higher costs for Americans purchasing insurance outside the workplace after Congress failed to renew enhanced Affordable Care Act premium tax credits that expired at the end of 2025. The subsidies helped millions of Americans afford coverage through the law’s insurance marketplaces.

The expiration is expected to increase premium payments for subsidized marketplace enrollees by an average of 114%, or approximately $1,016 annually, according to KFF’s estimates. Those subsidies apply to marketplace plans rather than most employer-sponsored insurance, leaving the two groups facing separate sources of financial pressure.

Employer-sponsored insurance covers nearly 157 million Americans under age 65, making workplace benefits a major component of household finances.

Over the past decade, average family insurance premiums have risen 55%, compared with a 50.1% increase in wages and 37.9% inflation, KFF reported.

Further increases may be ahead. KFF warned that early forecasts for 2027 point toward premium growth approaching double digits, potentially forcing employers to choose between absorbing additional expenses and shifting more costs onto their employees.

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