A recent survey by the Kaiser Family Foundation (KFF) reveals that family health insurance premiums for employer-sponsored plans rose sharply in 2025. According to KFF’s 27th annual Employer Health Benefits Survey, the average yearly premium for family coverage climbed to $26,993, a 6% increase from 2024. Meanwhile, employees are shouldering a bigger share of the costs, contributing an average of $6,850 toward family coverage, up from last year.
This rise outpaces both inflation, which was 2.7%, and average wage growth, which stood at 4% over the past year. Over the last five years, family premiums have increased by 26%, roughly matching the combined growth of wages and inflation. Despite this, the financial strain on both employers and workers continues to mount, reflecting ongoing challenges in managing healthcare costs in the U.S. employer system.
The survey highlights disparities based on employer size. Workers at smaller firms (10 to 199 employees) pay significantly more on average for family coverage, $8,889, compared to $6,227 at larger companies. Nearly 29% of employees at smaller firms pay more than half the premium themselves, compared to just 5% at bigger firms.
In terms of plan types, preferred provider organizations (PPOs) remain the most popular choice, covering 46% of workers. High-deductible health plans with savings options make up about a third of enrollment and tend to have lower premiums than PPOs. For those on PPOs, the average premiums are higher, $9,818 for single coverage and $28,272 for family coverage.
This survey, conducted with 1,862 employers across the country, provides a key look at trends affecting the health coverage of over 150 million Americans under 65. The steadily rising premiums are fueling debates over affordability and employer benefits strategies. Smaller firms in particular are shifting more costs to employees, which could impact worker satisfaction and enrollment.
The report underscores the ongoing struggle to balance rising medical costs with quality coverage, a critical issue that will continue to shape employer-sponsored insurance into 2026 and beyond.
