Employer Health Premiums Projected to Jump Nearly 9% in 2026, Pushing Costs to One-Quarter of Median Family Income

For millions of working-class Americans — especially poor families and people of color — the steady rise in employer-based health insurance costs threatens to deepen inequality in access to care. Experts warn that, much like Affordable Care Act (ACA) plans, employer-sponsored coverage is becoming more expensive. “Last year, health insurance premiums went up. This year, they went up. And next year, they’ll go up,” said Dr. Kevin Schulman of Stanford University. Even if monthly premiums remain flat, people will likely pay more through “higher deductibles or copays,” a quiet burden that hits lower-income workers the hardest.

Surveys show an average cost increase of nearly 9% for 2026 if employers take no action. Consulting firms Mercer, Aon, and Segal all project similar spikes — with Segal estimating an 11% rise for prescription drugs. “If we’re seeing a big increase of 6.5%, it’s likely that the employee share of the premium is going to go up by the same amount,” said Beth Umland of Mercer. For working families already struggling to afford groceries, rent, and transportation, even small jumps in health costs can mean skipping necessary doctor visits or medications. As JoAnn Volk from Georgetown University explained, “The increases are largely due to rising health care costs,” including inflation, higher hospital prices, and expensive drugs like GLP-1 weight-loss medications.

These hikes reflect a growing crisis of affordability. Between 2000 and 2021, Schulman said, health insurance costs rose from 13% to 25% of the median household income. That means families are now spending a quarter of their income just to stay insured — a staggering shift that disproportionately affects people of color and those in low-wage jobs, where employers often pass on higher costs rather than absorb them. As Claxton from KFF noted, some companies might keep premiums stable but “raise deductibles or copays,” leaving workers to shoulder hidden increases.

While corporations debate whether to “eat that cost,” working Americans — particularly Black and Brown communities — continue to face impossible choices between medical care and basic needs. The cycle of rising premiums reflects a broken system where the people who can least afford it will once again pay the most.

Link: NBCNews