Premiums for employer‐sponsored family health coverage have just crossed a new threshold. According to the latest survey from Kaiser Family Foundation (KFF), average annual premiums for a family plan are now $26,993 in 2025 — up 6 % from the prior year.
On average, workers are contributing about $6,850 annually toward that total, with their employers covering the rest.
Why this matters
- For many small businesses (2–10 employees and beyond), health insurance is one of the largest non‐wage expenses. When premiums climb, it directly impacts business costs, wage growth, and the ability to offer competitive benefits.
- The fact that premiums are rising faster than general inflation (which is around 2.7 %) and wage growth (around 4 %) means that businesses are facing pressure from everywhere.
- Employees feel it too—while the total premium is rising, worker contributions remain substantial. Higher costs might push businesses toward higher deductibles, increased cost‐sharing, or fewer benefit options.
What’s driving the increases?
Several key factors:
- Rising costs of prescription drugs — particularly newer, high‐cost therapies. Among large firms, 36 % cited drug prices as contributing “a great deal” to premium hikes.
- Increased prevalence of chronic disease, higher utilization of health services, and rising hospital and provider costs.
- Over the last five years, family premiums have increased about 26 %. That’s roughly on par with wage growth (29 %) and inflation (24 %) over the same period — but the headline number is still a heavy burden for businesses and families alike.
What this means for a health insurance brokerage like yours
Since you operate through erikseninsurance.com and target small businesses (2–10 employees) across industries, here’s how you can leverage this information:
- Advisory opportunity: Help your clients understand that this isn’t just “one more premium hike” — it reflects deeper cost drivers. Position yourself as the advisor who helps them navigate benefit design, cost‐sharing structures, plan options.
- Cost mitigation strategies: Encourage businesses to explore alternatives like high‐deductible plans with HSAs, carrier wellness programs, selective benefit design, or even health cost transparency initiatives.
- Communication tool: Use this data in your outreach. For example: “Family plan premiums now average nearly $27,000 — here’s how that impacts small business budgets, and here’s what you can do about it.” It helps open the conversation.
- Risk management angle: Premium hikes also signal potential risks — employee dissatisfaction, increased turnover if benefits feel less generous, potential wage stagnation because budget gets eaten by benefits rather than raises. You can help clients anticipate and mitigate these risks.
- Year‐ahead planning: Encourage small businesses to start planning now for next year’s benefits — since some experts expect continued increases. Early conversations could position you as proactive rather than reactive.
Bottom line
The “$27 K family plan” figure hits hard from a business owner’s standpoint. It’s a compelling benchmark — a real number that puts the cost of providing health insurance into sharp relief. For your brokerage, this is a timely moment to deliver value: show your clients that you understand the magnitude of the challenge, that you have strategies to help, and that you’re their guide through a rapidly changing benefits environment.
If you’d like, I can format this for posting (e.g., include subheads, bullet lists for digital readability) or tailor it specifically for your target audience of small businesses (2–10 employees). Would that be helpful?