Health insurance or new car? Premiums for families jump

Cost of job-based coverage rose 6% or more for three straight years, data show.

- BY PHIL GALEWITZ

With the federal shutdown in its fourth week, spurred by a stalemate over the cost of health insurance for 22 million Americans on Affordable Care Act plans, a new report shows that more than 154 million people with coverage through an employer also face steep price hikes - and that the situation is likely to get worse.

Premiums for job-based health insurance rose 6% in 2025 to an average of $26,993 a year for family coverage, according to an annual survey of employers released Wednesday by KFF, a health information nonprofit that includes KFF Health News.

It's the first time in two decades that the cost of covering a family of four has risen by 6% or more for three consecutive years, data from KFF show.

Over the last five years, the average premium for family coverage has increased by 26%, compared with a 29% increase in workers' wages and nearly 24% growth in inflation. The average cost for family coverage is now about the same as a new Toyota Corolla hybrid.

The average annual premium for an individual health plan provided by employers increased by 5% to $9,325 - nearly $3,000 higher than in 2016, according to the survey.

"It's a concern as health costs just keep going up," said Eric Trump, controller at Steve Reiff Inc., a small company in South Whitley, Ind., that specializes in sandblasting and painting heavy equipment.