"KFF suggested that various factors are contributing to the increasing costs, with GLP-1 weight-loss drugs being a prominent one. Overall, employers told the organization that they're bracing for higher costs for 2026 plans, with insurers already seeking double-digit increases in small-group plans. "There is a quiet alarm bell going off. With GLP-1s, increases in hospital prices, tariffs, and other factors, we expect employer premiums to rise more sharply next year," KFF President and CEO Drew Altman said in a statement."
"For deductibles-the amount people pay before their plan's coverage kicks in-costs for single coverage increased 17 percent since 2020. At that time, the average deductible was $1,617 for a covered person, while the average this year is $1,886. But deductibles can be much higher for those who work for a small employer. Among those workers, 36 percent had deductibles of $3,000 or higher this year."
"An analysis of current employer plans finds that the average cost to insure an American family hit nearly $27,000 this year, with average employee contributions to that bill being $7,000 a year. Family premiums are up 6 percent, or $1,408, from last year, while inflation only rose 2.7 percent and wage growth only rose 4 percent."
Employer-based family coverage now averages nearly $27,000 per year, with employees contributing about $7,000 annually. Family premiums increased 6 percent ($1,408), outpacing inflation (2.7 percent) and wage growth (4 percent). GLP-1 weight-loss drugs, rising hospital prices, tariffs, and other factors are cited as key contributors to higher costs. Employers expect sharper premium increases for 2026 and insurers are seeking double-digit rate hikes in small-group markets. Employers may respond by raising deductibles and other forms of cost sharing. Single-coverage deductibles rose 17 percent since 2020 to an average of $1,886; 36 percent of small-employer workers faced deductibles of $3,000 or more.
Read at Ars Technica
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