Family premiums for employer-sponsored health insurance climbed 6% in 2025 to an average of $26,993, according to the Kaiser Family Foundation’s (KFF) annual employer health benefits survey. Workers now contribute an average of $6,850 toward those premiums, with employers covering the rest. This year’s increase mirrors the elevated premium growth of recent years and outpaces overall inflation of 2.7% and wage growth of 4%.
Over the past five years, family premiums have risen 26%—roughly in line with cumulative inflation and wage growth. Many employers still expect steeper increases ahead, pointing to rising drug prices, new high-cost therapies, hospital pricing and other economic pressures. Among large employers, 36% say prescription drug prices have contributed “a great deal” to premium growth.
“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. “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.”
About 154 million Americans under age 65 rely on employer-based coverage. This year’s survey reflects responses from more than 1,800 employers with at least 10 workers.
GLP-1 Coverage Expands Among Largest Employers
Coverage of GLP-1 drugs for weight loss continues to grow, especially among very large firms. Of those surveyed, 19% of large employers offering health benefits cover GLP-1s such as Wegovy for weight loss, while 43% of firms with 5,000 or more workers provide this coverage—up from 28% in 2024.
However, employers remain concerned about cost. Most (59%) of the biggest firms offering weight-loss GLP-1s say spending has exceeded expectations, and 66% report a significant impact on prescription drug spending. Many employers require enrollees to participate in lifestyle or counseling programs before receiving coverage.
Although 44% of large employers say covering GLP-1 drugs is important to employees, only 1% of firms not currently offering coverage say they are very likely to add it next year.
Deductibles Continue to Rise
The study finds that nearly three in 10 covered workers (29%) are enrolled in high-deductible plans tied to Health Savings Accounts. Among workers with deductibles, the average single deductible rose to $1,886 this year. Deductibles are up 17% since 2020 when the average was $1,617.
Workers at small firms (under 200 workers) face significantly higher deductibles than those at large firms ($2,631 vs. $1,670). In 2025, 72% face an out-of-pocket maximum of more than $3,000 for single coverage, including 21% who face an out-of-pocket maximum of more than $6,000.
Part-Time and Low-Wage Workers Face Coverage Gaps
Part-time and low-wage workers continue to face significant barriers to employer-sponsored coverage. The survey found that only 27% of large firms and 18% of small firms offer health benefits to part-time workers. Coverage is also far less common at firms with many low-wage workers, where 43% of employees are covered compared with 64% at firms with fewer low-wage workers. Among small employers that do not offer coverage, one-third say Medicaid is a very important source of insurance for their workers, and another 22% say it is somewhat important.
The survey also finds that Individual Coverage Health Reimbursement Arrangements (ICHRAs) have seen limited adoption. Just 9% of small firms that do not offer health benefits provide funds to help at least one worker purchase individual-market coverage. Among the remaining non-offering firms, only 2% say they are very likely to offer such assistance in the next two years.
