Family Premiums Hit $28,303 in 2026 per KFF data.

The average family premium hit $28,303 in 2026. That number tells you almost nothing about your plan until you compare it to employers like you. Same size. Same industry. Same region. Most employers have never seen that comparison.

KFF's 2026 survey is out. Here's what changed, what other employers are doing about it, and what to ask your broker before your next renewal.

What did the 2026 KFF survey find?

Premiums rose again. Don't anchor on KFF's one-year change, though. It's the average premium employers were paying in the first half of 2026, after many had already raised deductibles and shifted cost to employees. It isn't a renewal quote.

The forward numbers are worse. Mercer's preliminary survey puts the 2027 increase at 8.2% per employee, the biggest jump since 2003. Without plan changes, those employers expect about 11%. Aon projects 9.5% before plan changes.

Look at the five-year view too. From 2021 to 2026, family premiums rose 28%. Workers' earnings rose 27%. Inflation rose 24%. Premiums are outrunning paychecks again, just barely.

Workers took a bigger slice this year. Their share of the family premium went from $6,850 to $7,471. Employers still pay most of it, $20,833 per family.

Why isn't the national average your benchmark?

Because it blends a 40-person dental practice with a 40,000-person hospital system. The gaps inside the average are bigger than the year-over-year change.

Take firm size alone. A worker at a small firm (10 to 199 workers) pays $9,687 toward family coverage. At a large firm, it's $6,840. Small-firm family premiums are actually lower, $27,288 versus $28,592. Small employers just pass more of the cost to employees.

Deductibles split the same way. The average single deductible is $2,624 at small firms and $1,772 at large ones. More than half of small-firm workers, 55%, face a deductible of $2,000 or more.

So who are you really compared to? Size is one cut. Industry and region matter as much. A manufacturer in Ohio and a software company in California shouldn't share a benchmark. Your broker's book of business, regional surveys and national surveys like Mercer's can all fill that gap. The source matters less than the peer group.

Which parts of the KFF report should your broker use?

Three sections do most of the work.

• Section 1, cost of health insurance. Average total premiums for single and family coverage, by firm size, region and industry.
• Section 6, worker and employer contributions. Who pays what share of the premium. This is where you see if you're asking employees to carry more than peers do.
• Section 7, employee cost sharing. Deductibles, copays and coinsurance.

A benchmark built only on total premium is half the picture. Two plans can cost the same and treat employees very differently.

What are other employers doing about rising costs?

Mostly shifting cost to employees. Among large firms facing higher projected costs, 44% raised the share of premium employees pay. 21% raised deductibles or other cost sharing. 16% changed insurers or administrators.

That's the easy lever. It's also a lever with limits. Push contributions too far and the healthy employees opt out, leaving a sicker, costlier pool behind.

Employers know it isn't working. 28% of firms offering coverage are dissatisfied with the overall cost of care. Only a handful are unhappy with provider quality. The problem isn't the doctors. It's the price.

Can you see what's driving your costs?

Many employers can't. Only 60% of large firms agree they can get the prices their plan pays in-network providers. On pharmacy, it's worse. Just 49% say they get enough information on rebates and other payments tied to their employees' drug use. Nearly a quarter don't know.

Those are large employers with real buying power. Smaller fully insured groups usually see less. The carrier holds the claims data, and your carrier won't hand it over without a fight.

Rebates deserve their own look. If your PBM contract promises full pass-through, check what counts as a rebate. The contract language that actually protects you is narrower than most brokers explain.

What should you ask for before your next renewal?

Ask for a written premium benchmark report. Ask before renewal talks start, not during. Give your broker four weeks.

The report should show:

• Your premiums by coverage tier against the current edition's figures for your firm size
• Your employer and employee contribution split against the same peers
• Your deductible and out-of-pocket maximum against peer plans
• Where the data allows it, a cut by industry and region

Above benchmark? The next question is why. Carrier trend assumptions are a common answer, and a 12% increase they can't justify deserves pushback. Below benchmark? Good. Keep asking questions anyway.

Frequently asked questions

When does KFF publish the Employer Health Benefits Survey?

Every fall. The 2026 edition came out October 22, 2026. Any benchmark you see this winter should use it. A report built on the 2025 edition understates today's family premium by more than $1,300.

How much of the premium do employees usually pay?

KFF puts the average worker share at 18% for single coverage and 27% for family. In dollars, that's $1,672 and $7,471. Small firms ask more of employees than large ones, so compare against your size band, not the all-firm average.

What increase should I expect for 2027?

Plan for more than last year. Employer surveys project 8% to 11% cost growth for 2027, depending on the survey and whether it counts plan changes. Fully insured renewals are running hotter. In Illinois, Blue Cross 1/1/2027 renewals average about 15% for small groups and 22% for mid-market. Your renewal still depends on your own claims, your carrier's trend assumptions and your plan design. Use the surveys as a sanity check, not a forecast.

Can a fully insured employer get a benchmark report?

Yes. A premium benchmark doesn't need claims data. It needs your premiums, your contribution split, your plan design and your firm size. To see what a proactive strategy could save over five years, run your numbers through the 5-Year Benefits Blueprint.