Summary
U.S. employers are dealing with rising health insurance costs for the 154 million people they cover under age 65. Average costs for employer-sponsored health insurance have increased for both single and family plans, and future costs are expected to rise further. Large and small employers handle these costs differently, affecting what employees pay for their health coverage.
Key Facts
- Health insurance costs for U.S. employers are rising.
- 154 million people under age 65 are covered by employer-sponsored health insurance.
- Average annual premiums are $9,325 for single coverage and $26,993 for family coverage.
- Employers expect premiums to rise more next year due to factors like hospital prices and tariffs.
- Employees, on average, pay 16% of the premium for single coverage and 26% for family coverage.
- Larger employers tend to contribute more toward family coverage, with smaller employers more likely to pay the entire premium for single coverage.
- In 2025, 91% of all workers are at companies offering some health benefits, but the percentage of smaller firms offering benefits is declining.
- PPOs were the most common type of health insurance plan in 2025, with 46% of covered workers enrolled in them.
