Employer family premiums grew yet again in 2026, increasing by 5% to $28,303 on average, according to a new report from KFF.

Researchers at KFF polled 1,937 public and private employers with at least 10 workers for its annual Employer Health Benefit Costs Survey. The study found that individual premiums also grew by 5% to $9,804, according to the study.

The amount that workers are contributing to their premiums is also on the rise, the survey found. Contributions to family coverage rose 9% between 2025 and 2026 to $7,471 for the year, growth of $621. The average annual contribution in single coverage was $1,672.

By comparison, workers' wages increased by 3.7% in 2026, and inflation increased by 2.7%, though inflation has accelerated more quickly in recent months, the researchers said.

Matthew Rae, associate director of the healthcare marketplace program and one of the study's authors, told Fierce Healthcare that while a 5% increase isn't nothing, it is less than some of the double-digit hikes that actuaries and consultants have feared.

"I think that cuts against a thought that, like, the sky is falling on employer-sponsored health insurance," Rae said.

However, he added that while the number may be lower than some projections; it takes a lot of work for human resources teams to get a 5% increase. That means they're modifying benefits and actively shopping for better deals from the plans and other vendors with which they partner.

The significant bump for workers' costs comes after several years of employers aiming to reduce cost-shifting to their employees.

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