US health insurance costs are continuing to put pressure on American households, even when workers receive cover through their employers, two new reports have found. Premiums for family plans rose by about 5%, while the share paid by employees increased by 9%.
The findings come from an annual survey of nearly 2,000 employers by KFF, a non-partisan health research organisation, alongside a separate Commonwealth Fund report on the state of health insurance coverage in 2026.
For a family of four, the average annual health insurance premium has reached $28,000. Workers contribute about $7,000 of that sum on average, with employers paying the remainder.
“It’s basically the cost of a new car every year just to keep a family of four insured,” said Matthew Rae, associate director of KFF’s Health Care Marketplace Programme.
Although the overall increase in family premiums was broadly in line with wage growth and inflation, Rae warned that the rise remained significant because it was applied to an already substantial cost.
He said the faster growth in the amount paid by workers could signal a shift in costs from employers to employees. “We are asking people to chip in a lot of money,” he said. “Many people are committing a big chunk of their income to health insurance.”
High deductibles add to pressure
Joseph Babbitt, a senior financial controller at West Plains Veterinary Supply in Springfield, Missouri, is among roughly 157 million Americans who receive health insurance through their jobs.
His employer covers most or all of the monthly premium and offers several plans. Yet Mr Babbitt said the cost of using his insurance can still be difficult because of the deductible – the amount a patient must pay before the insurer begins covering medical care.
Now aged 60, he recalled deductibles of $250 or $500 in the 1990s. His current deductible is about $5,000.
“Everybody talks about health care and how much it’s costing them,” Mr Babbitt said. He added: “We are the only country on our planet that forces people into bankruptcy because they get sick.”
Uninsured rate rises
The Commonwealth Fund survey found that the cost of care is affecting people who have health insurance. About 43% of respondents said they had not sought healthcare because of the cost during the past year, while 31% reported having medical debt.
The report also found that the overall uninsured rate had risen over the previous two years. Sara Collins, its lead author, attributed the increase to federal policy decisions including the expiry of additional subsidies for people enrolled in Affordable Care Act plans and the loss of Medicaid coverage by some people after the end of the pandemic emergency.
Federal data indicates that millions have already lost coverage through Medicaid or the Affordable Care Act marketplaces. Millions more are projected to lose Medicaid when work requirements take effect next year.
“There is, I think, a strong feeling across the country that something probably does need to be done to the situation that people are facing in their health and health insurance – both on the cost side and then also on these coverage losses,” Ms Collins said.
Nearly three-quarters of people surveyed said the federal government had a responsibility to ensure all Americans had health coverage. That view was shared by about 45% of Republicans, 93% of Democrats and 76% of independents.
