---
title: Family Health Coverage Now Costs Workers $7,471 a Year, Up 9% in 2026
description: Workers pay $7,471 a year for employer family health coverage in 2026, up 9%, KFF found, and one in eight facing higher premiums cut retirement saving.
author: Darie Nani (Editor-in-Chief)
date: 2026-10-29T11:42:36.171Z
updated: 2026-10-29T11:42:36.211Z
canonical: https://richdadmagazine.com/article/family-health-coverage-cost-workers-2026-kff
image: https://cdn.nanimediahouse.com/pexels-a-father-and-his-children-engaged-in-activities-with-a-lapto-8188702.jpg
categories: Money & Legacy
content_type: News
region: United States
publication: Rich Dad Magazine
schema_type: Article
---

Workers who cover their family through an employer health plan are paying an average of $7,471 a year toward the premium in 2026, $621 or 9% more than last year, according to [KFF's annual Employer Health Benefits Survey](https://www.kff.org/other-health/workers-now-pay-7471-on-average-annually-for-family-health-coverage-up-9-or-621-from-2025-benchmark-employer-health-benefits-survey-finds/), published Oct. 22. Wages rose 3.7% over the same period.

One in eight workers whose premiums went up this year responded by putting less into their retirement savings, according to a separate 2026 study by LIMRA, the insurance industry research group.

"We have been hearing a lot about Affordable Care Act and Medicaid cuts," said Drew Altman, KFF's president and chief executive. "Now add a 9% increase in what workers with employer coverage paid toward family premiums in 2026 to the reasons voters are so concerned about their health care costs." Heading into 2027, the plan year most workers are choosing at open enrollment this autumn, forecasts are "again projecting premium increases approaching double digits," KFF said.

## Workers at Small Firms Pay $9,687 a Year for Family Coverage

Workers at firms with fewer than 200 employees contribute an average of $9,687 a year toward family coverage, $2,847 more than workers at larger firms, KFF found. At small firms, 32% of covered workers are in plans where they [pay more than half of the family premium](https://www.kff.org/health-costs/2026-employer-health-benefits-survey/), compared with 6% at large firms.

Among firms with 200 or more workers, 44% passed more of the bill to staff this year by raising the share of the premium employees pay, and 21% raised deductibles or other cost sharing for most services, in response to higher projected costs.

## Three in Four Covered Workers Saw Their Premium Rise This Year

Of employees with workplace medical coverage, 77% saw their premium rise in 2026, and for 17% the increase was more than 10%, LIMRA found in its 2026 Benefits and Employee Attitude Tracker, a survey of 4,052 U.S. workers. About half of those facing higher premiums changed how they spend or what benefits they take. Cutting everyday spending was the most common response, followed by switching to a cheaper medical plan and spending less on other workplace benefits.

Nearly three in four Gen Z employees whose premiums rose changed their spending or benefits, and 21% of them cut their retirement contributions.

"Successful retirement planning should focus not simply on how much income someone generates, but how much remains after taxes and healthcare expenses," said Jae W. Oh, a certified financial planner and fellow of the LIMRA Retirement Income Institute, whose new paper for the institute argues that [healthcare costs](https://richdadmagazine.com/article/senior-poverty-rate-2025-social-security-medical-costs) should be part of retirement planning from the start.

> "Increasing healthcare costs can put pressure on household budgets today while making it more challenging to save for the retirement people envision tomorrow."
> — Kimberly Landry, Research Director, Workplace Benefits Research, LIMRA and LOMA

## Most Workers Pick Their Plan in Under an Hour, and 55% Could Not Pay a $2,000 Bill Outright

LIMRA found that 63% of workers spend less than an hour reviewing their options and enrolling, and more than a quarter spend less than 30 minutes. More than half, 55%, said they would have to borrow or finance an unexpected $2,000 medical bill, or could not pay it at all.

## FAQ

**Q: How much do employers pay for family health insurance?**
The average total family premium in 2026 is $28,303, up 5% from 2025, and workers pay $7,471 of it, according to KFF. That leaves employers paying about $20,832 on average. Large employers cover more of the bill: their workers pay about 25% of the family premium, against 37% at firms with fewer than 200 workers.

**Q: What is the average employee contribution to health insurance in 2026?**
Workers with family coverage pay 27% of the premium on average, KFF found, and workers with single coverage pay 18%, or $1,672 a year. In HSA-qualified plans the average family contribution is lower, at $6,211.

**Q: Why is my employer's health insurance so expensive?**
Health costs were projected to rise substantially in 2026, KFF said, and many employers passed part of the increase to staff, so workers' contributions toward the family premium rose 9%, faster than the total premium. Over the last five years, family premiums rose 28%, roughly in line with workers' wages (26.9%) and inflation (24.4%).