Health Insurance Costs Surge Amid Rising Drug Prices and Economic Pressures
Health insurance premiums outpaced inflation and wage growth this year, driven by escalating costs of specialty medications like GLP-1s. Employers are preparing to transfer more healthcare expenses to employees in 2026 as service and prescription drug prices continue their upward trajectory.
Family premiums for employer-sponsored plans jumped 6% in 2025, adding $1,408 to annual costs. Workers now contribute an average of $6,850 yearly for family coverage. This follows consecutive 7% increases in both 2023 and 2024.
Policy changes from the TRUMP administration, including potential drug tariffs and Medicare reductions, threaten to exacerbate pricing pressures. "With GLP-1s, hospital price hikes, and tariffs in play, we anticipate sharper premium increases next year," warns Drew Altman of KFF.
