Health Insurance Costs Skyrocket to $27,000: Urgent Update

UPDATE: Health insurance costs for families through employers have surged to an alarming $26,993 per year, echoing the price of a brand-new Toyota Corolla hybrid. This urgent development comes as over 154 million people grapple with skyrocketing premiums, according to the latest report from KFF (Kaiser Family Foundation).

The report reveals that job-based health insurance premiums rose by 6% in 2025, marking the first time in two decades that costs for family coverage have increased by this magnitude for three consecutive years. The trend is concerning, especially as the federal government shutdown, which began on October 1, 2023, highlights ongoing disputes over health coverage for the 22 million Americans enrolled in Affordable Care Act plans.

Why does this matter NOW? With rising premiums and increasing out-of-pocket expenses, many families are feeling the financial strain. Over the past five years, average premiums for family coverage have climbed by 26%, outpacing both wage increases of 29% and inflation, which grew nearly 24%. “It’s a concern as health costs just keep going up,” said Eric Trump, controller at Steve Reiff Inc. in Indiana, whose company saw an 8% increase in health insurance costs for the upcoming fiscal year.

The survey indicates that employers are also reacting to the rising costs by shifting financial burdens to employees. The average worker now contributes $1,440 for individual coverage and $6,850 for family coverage. Alarmingly, more than one-third of workers now face deductibles of $2,000 or more, a stark increase of 32% over the past five years.

Rising drug costs, particularly for weight-loss medications, are further exacerbating the situation. “Large employers know these new high-priced weight-loss drugs are an important benefit for their workers, but their costs often exceed their expectations,” noted Gary Claxton, a KFF senior vice president. Many employers are now reconsidering coverage options to manage these skyrocketing expenses.

As costs mount, nearly half of large employers report that their employees express “moderate” to “high” concerns regarding their financial contributions to health coverage. The growing gap between health insurance costs and wage growth raises questions about sustainability and employee well-being.

What’s next? If the government fails to act, tax credits helping the 22 million Americans enrolled in ACA plans will expire in January, potentially doubling premiums for these consumers. Meanwhile, the Congressional budget cuts to Medicaid threaten to leave millions more uninsured over the next decade.

The KFF report, based on a survey of 1,862 private and public employers, emphasizes that without intervention, the financial burden on American families could worsen dramatically. As these developments unfold, the urgency for comprehensive solutions to rising healthcare costs has never been more critical.

Stay tuned for updates as this situation evolves, and consider the implications of these rising costs for your own health coverage.