With the federal shutdown coming into its fourth week, spurred by a stalemate over the price of medical insurance for 22 million Individuals on Inexpensive Care Act plans, a new report reveals that over 154 million folks with protection by means of an employer additionally face steep value hikes — and that the scenario is prone to worsen.
Premiums for job-based medical insurance rose 6% in 2025 to a median of $26,993 a 12 months for household protection, in accordance with an annual survey of employers launched Oct. 22 by KFF, a well being data nonprofit that features KFF Well being Information.
It’s the primary time in 20 years that the price of overlaying a household of 4 has risen by 6% or extra for 3 consecutive years, information from KFF reveals.
During the last 5 years, the typical premium for household protection has elevated by 26%, in contrast with a 29% enhance in staff’ wages and almost 24% progress in inflation. The common value for household protection is now about the identical as a brand new Toyota Corolla hybrid.
The common annual premium for a person well being plan supplied by employers elevated by 5% to $9,325 — almost $3,000 larger than in 2016, in accordance with the survey.
“It’s a priority as well being prices simply hold going up,” stated Eric Trump, controller at Steve Reiff Inc., a small firm in South Whitley, Indiana, that makes a speciality of sandblasting and portray heavy gear.
Trump, who shouldn’t be associated to President Donald Trump, stated his firm’s medical insurance prices rose 8% for the 2026 fiscal 12 months — roughly the identical as they’ve in the previous few years.
Staff at Reiff pay about half the price of their well being protection. About half of its 20 present staff decline the insurance coverage as a result of they get protection by means of a member of the family or select to go uninsured, he stated. “There’s not so much we are able to do as we don’t have sufficient staff to unfold out the prices.”
Most individuals with job-based insurance coverage contribute to the price of their premiums, with the typical employee this 12 months contributing $1,440 for particular person protection or $6,850 for household protection.
Over time, extra staff have paid more and more larger deductibles, the quantity they need to spend out-of-pocket on medical companies earlier than their insurer pitches in. A couple of‑third of coated staff are enrolled in a plan with a deductible of $2,000 or extra for a person. The share of staff with such a plan has elevated 32% over the past 5 years and 77% over the past 10 years, the report stated.
Rising drug and hospital prices are sometimes cited as main culprits for rising medical insurance prices, and neither reveals indicators of ebbing.
“Early experiences counsel that value developments will probably be larger for 2026, probably resulting in larger premium will increase until employers and plans discover methods to offset larger prices by means of adjustments to advantages, value sharing, or plan design,” the KFF survey stated.
One huge concern amongst employers is the excessive value of GLP-1 medication for weight reduction, which a rising variety of firms cowl. Their excessive costs, mixed with sturdy demand, have led some workplaces to tighten or eradicate protection for weight reduction.
“Massive employers know these new high-priced weight-loss medication are an essential profit for his or her staff, however their prices typically exceed their expectations,” examine writer Gary Claxton, a KFF senior vp, stated in a press launch. “It’s not a shock that some are rethinking entry to the medication for weight reduction.”
Employers usually reply to larger well being prices by shifting prices to their staff, however it’s unclear how far more monetary ache staff can take. The survey discovered almost half of enormous employers stated their staff have “reasonable” or “excessive” issues about their degree of value sharing.
Whereas the rising value of employer-sponsored insurance coverage has outpaced common inflation, the problem obtained scant consideration in current months on Capitol Hill. To assist pay for extending tax cuts, Trump’s tax and spending regulation reduces by billions of {dollars} the quantity the federal government spends on Medicaid, the state-federal medical insurance program for 70 million low-income and disabled folks. Congressional finances scorekeepers predict the cuts to Medicaid will result in thousands and thousands extra folks turning into uninsured over the following decade.
The federal authorities has been shut down since Oct. 1 as Democrats refuse to vote for a brand new spending measure until Republicans agree to increase tax credit that assist about 22 million folks purchase well being protection by means of the ACA marketplaces. With out congressional motion, the tax credit will expire, and premiums will double for a lot of shoppers, beginning in January.
The KFF report relies on a survey this 12 months of 1,862 randomly chosen nonfederal private and non-private employers with 10 or extra staff.