Premiums for employer-sponsored family health coverage have hit nearly $27,000 a year, according to a new Kaiser Family Foundation (KFF) analysis — a new record that is setting off "a quiet alarm bell" for employers.
Annual premiums rose 6% over the past year to reach $26,993 in 2025, according to KFF's annual employer health benefits survey, released Oct. 22. The jump is similar to the 7% increase recorded in each of the previous two years and is much higher than the general inflation rate of 2.7%.
On average, workers contributed $6,850 toward the cost of family coverage this year, with employers footing the rest of the bill. The average deductible among covered workers in a plan with a general annual deductible was $1,886 for single coverage.
While the cost of coverage significantly jumped in 2025, experts warned that next year could be even worse. "There is a quiet alarm bell going off," KFF President and CEO Drew Altman said in a statement. "With GLP-1s, increases in hospital prices, tariffs, and other factors, we expect employer premiums to rise more sharply next year."
Growing health care costs are just one of the biggest total rewards developments. Here's a look at other recent news in the compensation and benefits space.
Social Security Announces 2026 Benefit Increase
Social Security benefits will rise by 2.8% next year, the Social Security Administration announced Oct. 24.
On average, the cost-of-living adjustment (COLA) translates to an increase of about $56 per month, the agency said. Roughly 71 million people, including retirees and workers with disabilities, receive Social Security payments. The Social Security Administration also announced the 2026 wage cap. The maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100.
White House: Employers Can Offer Stand-Alone Fertility Benefits
The Trump administration is encouraging employers to adopt fertility benefits by allowing them to offer stand-alone fertility insurance, similar to how they offer dental or vision coverage.
The administration recently posted a new set of fertility benefits insurance guidance, saying that the ability to offer stand-alone fertility benefits represents "a massive opportunity to expand access to IVF [in vitro fertilization] coverage."
Annual Inflation Rises Back Up to 3%
Annual inflation ticked up to 3% in September, the largest increase since January.
The consumer price index (CPI) for September increased 0.3% on a monthly basis and rose 3% for the 12 months ending in September, the U.S. Bureau of Labor Statistics (BLS) reported Oct. 24. That follows the 0.4% monthly rise in August and the month's annual inflation rate of 2.9%.
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