Marketplace

Employer plans

While ACA sticker shock spreads, a new KFF report out today suggests that people on employer-based health insurance plans are also in for some heftier prices—though the increases aren’t quite as dramatic as the Marketplace hikes.

An analysis of current employer plans finds that the average cost to insure an American family hit nearly $27,000 this year, with average employee contributions to that bill being $7,000 a year. Family premiums are up 6 percent, or $1,408, from last year, while inflation only rose 2.7 percent and wage growth only rose 4 percent.

KFF suggested that various factors are contributing to the increasing costs, with GLP-1 weight-loss drugs being a prominent one. Overall, employers told the organization that they’re bracing for higher costs for 2026 plans, with insurers already seeking double-digit increases in small-group plans.

“There is a quiet alarm bell going off. With GLP-1s, increases in hospital prices, tariffs, and other factors, we expect employer premiums to rise more sharply next year,” KFF President and CEO Drew Altman said in a statement. “Employers have nothing new in their arsenal that can address most of the drivers of their cost increases, and that could well result in an increase in deductibles and other forms of employee cost sharing again, a strategy that neither employers nor employees like but companies resort to in a pinch to hold down premium increases.”

For deductibles—the amount people pay before their plan’s coverage kicks in—costs for single coverage increased 17 percent since 2020. At that time, the average deductible was $1,617 for a covered person, while the average this year is $1,886. But deductibles can be much higher for those who work for a small employer. Among those workers, 36 percent had deductibles of $3,000 or higher this year.