The ‘quiet alarm bell’ on U.S. health costs: Employers are backed into a corner, and workers are paying the price

U.S. employers and workers are being squeezed by the steepest run-up in health insurance costs in years, with average family premiums nearing $26,993 in 2025 and pressure building for even sharper increases in 2026, according to a recent KFF survey.

The near-term outlook points to renewed cost shifting to employees, tighter coverage for pricey drugs like GLP‑1s, and a louder policy debate over price growth—without an obvious, scalable fix in sight.

The new premium reality

KFF, a health research group, released an employer survey showing average family premiums rose about 6% in 2025 to roughly $26,993, with workers contributing about $6,850 toward the total. Employers cite prescription drugs, chronic disease, and elevated utilization as the leading cost drivers, according to a New York T