Health insurance costs rising twice as fast as inflation, KFF reports

Tara Bannow covers hospitals, providers, and insurers. You can reach Tara on Signal at tarabannow.70.

Premiums for employer-provided health insurance spiked by more than double the rate of inflation this year, driving the cost of a family plan to almost $27,000, a new survey finds. 

KFF’s annual survey of more than 1,800 small and large employers found family premiums grew 6% in 2025, compared with a 7% increases in each of the previous two years. That’s compared with general inflation of 2.7% and wage growth of 4% over the past year. 

While KFF’s report doesn’t provide insight into 2026 costs, other large surveys have cited premium hikes of 9%. Newly released individual and small-group market premiums that show steep increases don’t bode well for large-group employer plans, either.