Family premiums for employer coverage jump 6% in 2025

Annual premiums for employer-sponsored family health insurance coverage rose to nearly $27,000 in 2025, up 6% from 2024, a KFF survey revealed. Over the past five years, the average premium for family coverage has increased 26%, which is roughly in line with inflation and wage growth, KFF said.

The survey included interviews with more than 1,800 non-federal public and private employers. In addition to examining trends in employer-sponsored health coverage, this year's edition of KFF's employer health benefits survey asked employers about their approaches to primary care, menopause support benefits and coverage of GLP-1 agonists for weight loss.

The survey revealed that employees contributed an average of 16% ($1,440) toward premiums for single coverage and 26% ($6,850) for family coverage. The average deductible for covered workers enrolled in a plan with a general annual deductible was $1,886 for single coverage.

Overall, large firms (with 200 or more employees) suggested that rising prescription drug prices, hospital prices, higher service use and chronic disease prevalence all could be contributing to rising family premium costs in recent years.

An accompanying article about KFF's findings, published in Health Affairs, noted that the average family premium for covered workers was higher in large firms than in small firms.

"Average single and family premiums were higher for covered workers in PPOs and lower for covered workers in HDHP/SOs compared with the all-plan averages," the article stated.

"Average premiums for single and family coverage were lower for workers at private for-profit employers and higher for workers at private not-for-profit employers than for workers not in those firm categories."

Nearly half of all covered employees were enrolled in a PPO plan, while 33% were enrolled in an HDHP/SO and 12% were enrolled in an HMO.

The survey also found that the share of companies that offer health benefits increased with company size. For example, in 2025, 51% of companies with 10 to 24 workers offered health benefits to at least some workers, while 99% of companies with 1,000 or more workers did.

Additionally, employees of public or government organizations were more likely to be covered than workers in private or nonprofit firms.

The survey also highlighted a top issue for health plans: GLP-1 coverage.

As GLP-1s continue to show efficacy for blood sugar control for type 2 diabetes and weight loss, health plans are under pressure to extend coverage.

According to the survey, about 19% of large firms offering health benefits covered GLP-1 agonists when used primarily for weight loss. Again, the larger the company, the more likely they were to provide coverage -- 43% of firms with 5,000 or more workers reported providing GLP-1 agonist coverage for weight loss.

"Firms may condition their coverage of these medications on enrollees taking additional steps to address their weight or other utilization management requirements," the Health Affairs article noted.

"Among large firms that covered GLP-1 agonists for weight loss, 34[%] required enrollees to meet with a dietitian, case manager, or therapist or to participate in a lifestyle program to receive coverage for weight loss."

Nearly two-thirds of large firms that covered GLP-1 agonists for weight loss reported that doing so was "very important" to their employees' satisfaction with their health plan.

Jill McKeon has covered healthcare cybersecurity and privacy news since 2021.