The cost of employer-sponsored family health insurance continues to outpace both inflation and wage growth. According to KFF’s 2025 annual benchmark survey of more than 1,800 employers, average family premiums hit $26,993 this year — a 6% increase over 2024. Workers are contributing roughly $6,850 of that annually out of their paychecks, with employers covering the remaining $20,143.
The survey points to several forces driving costs higher, including rising prescription drug prices, increased utilization of healthcare services, and the growing expense of GLP-1 weight loss medications. Among the largest employers, 43% now cover GLP-1 drugs for weight loss, but most say the costs have exceeded expectations. Meanwhile, deductibles continue to climb — the average single-coverage deductible now sits at $1,886, up 17% since 2020. KFF’s president warned that premiums are expected to rise even more sharply in the coming year, which could trigger another wave of higher deductibles and cost-sharing for workers.