What is the average premium for employer health insurance?
The average yearly premium in 2026 is $9,804 for single coverage and $28,303 for family coverage. That is about $817 a month and $2,359 a month. Smaller firms and the South region are slightly lower, as the chart shows.
- Single coverage
- Family coverage
- All firms with 10 or more workersSingle coverage: $9,804Family coverage: $28,303
- Firms with 10 to 199 workersSingle coverage: $9,593Family coverage: $27,288
- South regionSingle coverage: $9,272Family coverage: $26,702
Source: KFF 2026 Employer Health Benefits Survey (average annual premiums by region)
KFF surveys firms with 10 or more workers, so very small businesses are not in these averages. KFF also does not publish state level premiums, because few firms respond in many states, so the South region is the closest local figure for Florida, Texas, Georgia and Tennessee.
Your own price depends on your employees, where they live and the plan you choose. A quote is the only way to know it.
Who pays what: the employer or the worker?
Most covered workers pay part of the premium. On average they pay 18% of a single premium and 27% of a family premium, which is $1,672 and $7,471 a year. The employer pays the rest.
| Single coverage | Family coverage | |
|---|---|---|
| All firms | 18% | 27% |
| Firms with 10 to 199 workers | 16% | 37% |
| Larger firms | 18% | 25% |
At smaller firms, 29% of covered workers are in a plan where the employer pays the entire single premium, compared with 5% at larger firms. But 32% of covered workers at smaller firms must pay more than half of a family premium, compared with 6% at larger firms. The average family contribution at smaller firms is $9,687 a year.
There is no federal rule on how much you must pay. To qualify for the Small Business Health Care Tax Credit you must pay at least 50% of employee only premiums.
How fast have premiums grown?
Across all firms the average premium rose 5% from 2025 to 2026. At firms with 10 to 199 workers the average family premium is 26% higher than in 2021 and 54% higher than in 2016, rising from $17,753 in 2016 to $27,288 in 2026.
- 2016$17,753
- 2021$21,598
- 2026$27,288
Source: KFF 2026 Employer Health Benefits Survey (firms with 10 to 199 workers)
During the last year, KFF reports workers' wages rose 3.7% and inflation was 2.7%. Heading into 2027, KFF says forecasts project premium increases approaching double digits, though how and when that reaches premiums remains to be seen. Your renewal quote will show your own change.
What do employees pay when they use the plan?
The average deductible for single coverage is $1,955 among covered workers in plans with a general annual deductible. Smaller firms lean toward higher deductibles: 55% of their covered workers are in a plan with a deductible of $2,000 or more, compared with 33% at larger firms.
An employer can pair an HSA qualified plan with employer contributions to help with deductibles. Employer contributions count toward the yearly HSA limit, and our HSA guide explains the 2027 limits.
How can I lower the cost of small business health insurance?
You can lower what you pay in four ways: claim the tax credit if you qualify, change the plan level, consider an HSA qualified plan or move to a fixed budget with a CHOICE arrangement or QSEHRA.
- Check the Small Business Health Care Tax Credit. It is worth up to 50% of the premiums you pay, for two consecutive years, if you meet the size and wage limits.
- Compare plan levels. SHOP bronze plans pay on average 60% of costs, silver 70%, gold 80% and platinum 90%. A plan that pays less usually has a lower premium and higher costs when employees use it.
- Look at HSA qualified plans. KFF found their average premium is lower: $8,989 for single coverage and $26,450 for family coverage.
- Decide how much you contribute. You choose your share, and a flat dollar amount can keep your cost predictable.
- Ask about a CHOICE arrangement or QSEHRA. You set the budget, and employees choose their own plan with it.
- Start renewal early. Ask your insurer or agent 45 to 60 days before coverage ends what you will be offered.
Among firms that stopped offering coverage in the past five years, 31% said it followed a high renewal quote after high claims from a small number of enrollees, and 34% said the cost was too high. A comparison before renewal gives you time to act.
See our Small-Group Health plans
Real health benefits for a small team. We handle shopping, setup and renewals.Small business health insurance calculator: employee count and tax credit
Enter your full-time and part-time employees to see your full-time equivalent count, which rules apply to you and what the small business health care tax credit could be worth.
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