As open enrollment opens across Kansas and the nation, many households are discovering a familiar and frustrating trend: health-insurance premiums are rising again for 2025. For some families, renewal letters bring increases small enough to absorb; for others, the jump is significant enough to force tough decisions. But the numbers show one thing clearly—costs are climbing across the board, and the pace is unlikely to slow soon.
According to the 2025 Kaiser Family Foundation (KFF) Employer Health Benefits Survey, the average annual premium for employer-sponsored family coverage has climbed to $26,993, a 6% increase from the previous year. Workers now contribute an average of $6,850 toward that total.
For single coverage, KFF reports that the average annual premium has risen to $9,325 in 2025. Deductibles continue upward as well: the average deductible for single coverage sits at $1,886, up from $1,773 the year before (KFF).
Even insured households are feeling stretched. While wage growth has hovered around 4%, premium growth of 6% continues to outpace paychecks—and general inflation at roughly 2.7%.
This leads us asking “What is driving these increases?”, The answer is Insurers, economists, and employers point to several key factors:
Rising medical and prescription-drug costs
Employers surveyed by KFF and Reuters cite the explosive growth in spending on new prescription drugs—especially GLP-1 medications like Ozempic, Wegovy, and Mounjaro. These drugs, often costing over $1,000 per month per patient, are now among the fastest-growing drivers of health-plan spending.
Higher health-care usage post-pandemic
Many procedures delayed during COVID are now happening in full force. According to TIME, elective surgeries, diagnostics, and preventive appointments have all surged, increasing claims and pushing premiums higher.
More chronic conditions
The Washington Post reports that diabetes, obesity, hypertension and other chronic conditions are rising nationwide. Chronic conditions are among the most expensive categories for insurers, and the growth in prevalence is reflected directly in premiums.
Inflation and hospital costs
Even when general inflation cools, health-care inflation often lags behind — and hospitals face higher labor, equipment, and facility-fee costs. KFF notes that these input pressures continue to raise premiums faster than inflation in the broader economy.
Marketplace uncertainty for 2026
For those on the ACA federal marketplace, the outlook could be more turbulent. A Johns Hopkins Bloomberg analysis warns that some marketplace plans could see increases up to 59% in 2026 if enhanced federal subsidies expire. The Guardian also reports widespread expectation of “double-digit” increases nationwide.
What You Can Do During Open Enrollment
While the landscape is challenging, consumers still have tools to stretch their health-care dollars. Enrollment season is the most important time to evaluate your options carefully.
1. Compare every plan – even if you like your current one
Insurers often adjust premiums, deductibles, copays, and networks year-to-year. A plan that was a bargain last year may not be the best value this year.
2. Look at the total yearly cost
A low monthly premium can mask a high deductible. For others, a slightly higher premium with lower cost-sharing can save money over time.
3. Double-check provider networks
Plans sometimes drop doctors or hospitals. Out-of-network care can cost thousands more.
4. Consider an HDHP with an HSA
For healthier families with few expected medical visits, a High-Deductible Health Plan paired with a Health Savings Account can reduce premiums and offer tax advantages.
5. Explore off-marketplace options
Some insurers offer plans outside the ACA marketplace that may better fit certain budgets or medical needs—though they may come with different rules or exclusions. Always review coverage details carefully.
6. Seek expert help
Licensed agents and navigators can compare plans side-by-side and explain hidden costs or lesser-known options. Many offer this help at no cost.
The Year Ahead Looks Challenging
Premium increases in 2025 are significant, but early data suggests 2026 could bring even sharper spikes, especially if federal subsidies change and medical inflation persists. For many households, these rising costs require difficult decisions — but understanding the reasons behind them, and taking full advantage of open enrollment, can help families protect their budgets as best they can.
Open enrollment is your window of opportunity — use it wisely.
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