Employer-sponsored health insurance remains the cornerstone of healthcare coverage for most Americans under 65 — but 2025 has brought another significant increase in costs. According to KFF’s latest annual survey, family premiums for employer-sponsored health insurance rose by 6% this year, reaching an average of $26,993. Workers now contribute about $6,850 toward these premiums, while employers cover the rest.
This steady climb in healthcare costs continues to outpace inflation and wage growth, creating challenges for both employers and employees. At 3B Healthcare, we recognize how these financial pressures affect workforce stability, employee satisfaction, and recruitment across the healthcare sector. Here’s a closer look at what’s driving these cost increases — and what employers are doing to adapt.
1. Premiums Hit Record Highs in 2025
The 2025 KFF Health Benefits Survey reveals that family premiums have risen $1,408 from last year, marking another consistent year of growth. Over the past five years, the cumulative increase in family premiums (26%) nearly matches inflation (23.5%) and wage growth (28.6%), showing how costs continue to track — but strain — both employers and workers.
While the 6% rise seems modest compared to prior double-digit spikes, it still outpaces general inflation (2.7%) and average wage growth (4%). For many organizations, this means tightening budgets or shifting more costs to employees through deductibles and copays.
“There’s a quiet alarm bell going off,” said KFF President and CEO Drew Altman. “Employers have nothing new in their arsenal to address most of the drivers of their cost increases.”
2. Rising Drug Prices and GLP-1 Coverage Drive Costs Up
One of the biggest cost drivers in employer-sponsored health insurance 2025 is the rising expense of prescription drugs — particularly GLP-1 medications like Wegovy, used for weight loss and diabetes management.
- 36% of large employers say drug prices contributed “a great deal” to higher premiums.
- 43% of the biggest employers (5,000+ workers) now cover GLP-1s for weight loss — up from 28% in 2024.
- 59% say the cost of these drugs has exceeded expectations.
To manage these expenses, many companies have introduced conditions for coverage, such as requiring participation in lifestyle programs or consultations with dieticians. Still, the popularity and effectiveness of GLP-1 drugs make it difficult for employers to deny coverage entirely — especially as employees increasingly view them as essential health benefits.
At 3B Healthcare, we see similar cost concerns among hospital systems and healthcare employers. Many are balancing workforce health benefits with operational costs, seeking solutions that maintain employee wellness while managing long-term financial sustainability.
3. High-Deductible Health Plans Continue to Grow
Another major trend in employer-sponsored health insurance 2025 is the steady rise in high-deductible health plans (HDHPs). Nearly 29% of covered workers are now enrolled in HDHPs linked to Health Savings Accounts (HSAs) — a tax-advantaged option designed to help employees manage healthcare expenses.
- The average deductible for single coverage in 2025 reached $1,886, up from $1,773 in 2024.
- Workers at small firms face much higher deductibles ($2,631) than those at large companies ($1,670).
- Over half (53%) of workers at small firms face a deductible of at least $2,000.
These figures indicate a growing shift in cost-sharing between employers and employees. While HDHPs can lower premium expenses, they also increase out-of-pocket costs — a concern especially for lower-wage and part-time workers.
4. Coverage Gaps Persist for Part-Time and Low-Wage Workers
The survey also highlights an ongoing challenge: part-time and low-wage employees still struggle to access affordable coverage.
- Only 27% of large firms and 18% of small firms offer health insurance to part-time staff.
- At companies with many low-wage workers, only 43% of employees are covered, compared to 64% at higher-wage firms.
- About one-third of small employers that don’t offer insurance say Medicaid is a “very important” coverage source for their workforce.
Despite efforts to expand access through options like Individual Coverage Health Reimbursement Arrangements (ICHRAs), adoption remains minimal — with just 9% of small firms offering funds for employees to purchase their own plans.
For healthcare employers, this disparity underscores the importance of inclusive benefit policies that attract and retain essential staff.
5. What Employers Can Expect in 2026 and Beyond
Looking ahead, experts warn that employer premiums could rise more sharply in 2026, driven by:
- Expanding GLP-1 drug use
- Ongoing hospital price increases
- Global supply chain tariffs
- Growing chronic disease prevalence
Without major policy or pricing interventions, many employers may once again turn to higher deductibles and cost-sharing as short-term relief. However, this approach risks higher employee turnover, delayed care, and lower job satisfaction — all factors that directly impact productivity and retention, especially in healthcare roles.
At 3B Healthcare, we encourage healthcare leaders to explore sustainable workforce strategies that balance competitive benefits with financial health. Solutions such as comprehensive wellness programs, preventive care partnerships, and tailored staffing models can mitigate long-term cost pressures while maintaining employee well-being.
Conclusion
The steady rise in employer-sponsored health insurance premiums in 2025 reflects deep structural challenges in the U.S. healthcare system — from rising drug costs to growing chronic disease rates. As premiums near $27,000 per family, employers and employees alike are feeling the squeeze.
For healthcare organizations, understanding these trends is essential to remaining competitive while ensuring workforce stability. At 3B Healthcare, we partner with clients to design and implement strategies that not only optimize staffing and workforce management but also reduce overall labor-related costs. Our insight-driven solutions promote both affordability and clinician well-being, helping employers achieve a stronger, more sustainable balance between financial efficiency and quality care.
👉 Learn more about how 3B Healthcare partners with employers to lower workforce costs and support healthcare professionals through evolving industry trends.
FAQs About Employer Health Insurance 2025
Employer-sponsored health insurance is a plan offered by employers to their employees and often their families. Employers usually purchase a group policy and share premium costs with employees. These plans are generally more affordable and comprehensive than individual coverage because group rates are negotiated with the insurer.
Employer-sponsored health insurance is a health plan provided by an employer to employees and often their families. The employer usually buys a group insurance policy and shares the premium costs with employees. These plans are typically more affordable and comprehensive than individual coverage, thanks to group rate negotiations.
In 2025, California’s employer health insurance rules remain the same. Most employers must offer coverage, and small businesses can still use the SHOP marketplace for tax credits. Key factors include employer size, plan affordability, and employee eligibility for Covered California tax credits.
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