How Much Does Health Insurance Cost?

The headline numbers

In 2025, the average annual premium for employer-sponsored health coverage was $9,325 for single coverage and $26,993 for family coverage, according to KFF — up 5% and 6% respectively versus 2024.

That premium is the total cost of the plan, split between employer and worker. It works out to roughly $777 a month for single coverage and about $2,249 a month for family coverage — before you pay a single copay or deductible.

What workers actually pay from their paychecks

Workers contribute, on average, 16% of the premium for single coverage ($1,440 a year, about $120 a month) and 26% for family coverage ($6,850 a year, about $571 a month).

The employer's share is the hidden part of your compensation: for single coverage, the employer pays roughly $7,885 a year on average behind the scenes. When you compare job offers, that employer contribution is real money — two offers with the same salary can differ by thousands once health benefits are counted.

The deductible: $1,886 on average

The average general annual deductible for covered workers with single coverage is $1,886. That's what you pay for covered services before the plan starts paying its share — though many plans cover checkups and preventive care before the deductible is met.

Averages hide a wide range: high-deductible plans paired with savings options set deductibles much higher in exchange for lower premiums. The deductible is usually the single biggest lever in your total yearly cost, so it's worth more attention than the premium alone.

Your plan type changes the price

Not all plan types cost the same. KFF reports average single premiums of $9,818 for PPO plans versus $8,620 for high-deductible plans with a savings option (family: $28,272 vs $25,379). The most common enrollment mix is PPO (46%), HDHP with savings option (33%), HMO (12%), and POS (9%).

The pattern is the classic tradeoff: plans with lower premiums tend to have higher deductibles, and vice versa. Neither is automatically cheaper for you — it depends on how much care you expect to use.

What moves your cost up or down

Beyond the national averages, your costs move with a handful of factors:

• Plan type. PPOs cost more on average than high-deductible plans; HMOs and POS plans sit in between.
• Single vs. family. Family premiums run nearly triple single premiums on average.
• Your employer's contribution. Employers vary widely in how much of the premium they absorb.
• Where you get covered. These figures describe employer plans only — Marketplace, Medicare, and Medicaid pricing work differently.

The premium is only the cover charge

Your true yearly cost is premium + deductible + copays + coinsurance, capped by the plan's out-of-pocket maximum. A plan with a low premium and a high deductible can cost more in a bad-health year than a pricier plan with a low deductible.

HealthCare.gov's own advice for choosing a plan category: think about your total spending on health care, not just the premium — deductible, copay, and coinsurance differences can dwarf premium differences.

How to use these averages

Treat these numbers as a benchmark, not a quote. When you get a job offer, ask HR for three figures: the total premium, the employee's share, and the deductible — then compare all three against the KFF averages above. When choosing between your employer's plan options, run the total-cost math for a healthy year and a high-care year before deciding the cheapest premium wins.

Key costs, at a glance

Averages mask wide state-by-state variation. Your premium depends on your profile, location, and coverage choices.

Who it's best for — and who can skip it

How to compare

• Compare total yearly cost (premium + deductible + cost-sharing), not premium alone
• Ask what share of the premium your employer pays — it varies widely
• Check the deductible first; it's usually the biggest cost lever
• Note the plan type — PPO, HMO, HDHP, and POS price differently on average
• Remember these are national averages; your plan's specifics decide your bill

Your next step

Pull up your own plan's summary: total premium, your paycheck share, and the deductible. Compare all three against the KFF averages above. If your deductible looks high relative to your savings, read how deductibles, copays, and coinsurance work before open enrollment — and if your employer offers a high-deductible option, see the HDHP and HSA guide.

Keep unpacking

• /insurance/hmo-vs-ppo-vs-epo/
• /insurance/health-insurance-deductibles-copays/
• /insurance/hdhp-hsa-guide/
• /insurance/how-to-choose-health-insurance/
• /insurance/health-insurance-guides/