Health insurance costs set to jump 6 to 7% during open enrollment

Open enrollment season may bring unwelcome news for American workers, as health insurance costs are expected to rise significantly more than the current inflation rate.

Employees are likely to pay between 6% to 7% more for their 2025 employer-sponsored health insurance, more than double the current rate of inflation, according to a new analysis from consultant Mercer.

Workers could pay about $2,400 next year for single coverage in an employer-provided preferred provider organization, or PPO, the most common type of medical plan, Mercer said. Families would likely face paycheck deductions of $8,900 a year for their coverage, according to the group, whose projections are based on a survey of more than 1,700 employers.

More working-age Americans receive health insurance through their employers than any other source, with about 60% — or 164.7 million people — covered by their workplaces, according to KFF.

Companies, which typically pick up the bulk of their employees' health insurance costs, are likely to spend more than $18,000 on average to insure each worker in 2025, the study found. Workers typically shoulder between 16% to 25% of the total, depending on whether they are receiving single or family coverage, according to KFF's 2024 employer health benefits survey.

The findings come as American households continue to feel squeezed by rising prices, with inflation inching higher on everything from groceries to housing.

A KFF poll in July found that 4 in 10 insured adults under 65 years old worry about affording their monthly health insurance.

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