By — Hannah Grabenstein Hannah Grabenstein Leave your feedback Share Copy URL https://www.pbs.org/newshour/nation/why-health-insurance-premiums-are-rising-according-to-experts Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Why health insurance premiums are rising, according to experts Nation Nov 2, 2026 5:09 PM EST Like groceries, gas and other everyday necessities, annual premiums for employer-provided healthcare coverage are expected to rise sharply next year, with workers shouldering more of the costs. Analysts predict that premiums will jump as much as 9.5% in 2027, though experts say the resulting costs may not be as high as projected. Grow your mind Subscribe to our Science Newsletter to explore the wide worlds of science, health and technology. Enter your email address Subscribe Form error message goes here. Thank you. Please check your inbox to confirm. This year, the average cost of an employer-based family healthcare plan was $28,303. That amounted to a 5% increase from 2025, a KFF analysis found. And workers contributed on average 9% more than last year, or around $7,470 annually. "Many people with job-based coverage have real affordability issues," said Matthew Rae,…
Why health insurance premiums are rising, according to experts
In short
The average cost of an employer-sponsored family plan reached $28,303 in 2026, with workers covering an average of $7,470 of that total bill. Research indicates that 91% of premium growth over the last decade stemmed from actual healthcare spending rather than expanding insurer profit margins. These costs are further amplified by extensive hospital mergers and higher patient service utilization as insurers ease prior authorization requirements.
Key points
- Healthcare provider pricing and underlying medical spending serve as the primary drivers…: Healthcare provider pricing and underlying medical spending serve as the primary drivers of rising employee premiums rather than insurance profits.
- Diminished market competition from unchecked hospital consolidations enables facilities t…: Diminished market competition from unchecked hospital consolidations enables facilities to charge private insurers double what Medicare pays for basic services.
- Companies are increasingly shifting rising medical expenses directly to their workforce,…: Companies are increasingly shifting rising medical expenses directly to their workforce, with nearly half of large firms raising employee contributions.