The average cost for a family health insurance plan in the U.S. has really climbed, reaching a hefty $26,993 annually in 2025. Of that, employees are pitching in $6,850 themselves for family coverage. It’s a big chunk of change, and that’s doesn’t even touch on deductibles.
Premiums and What You Pay
It’s not just families feeling the pinch. For individuals, the average deductible for a general annual deductible plan in 2025 was $1,886. Now, you’d be surprised how often this happens, but smaller companies, those with 10 to 199 employees, tend to have higher deductibles than their larger counterparts. For these smaller firms, the average deductible for individuals clocked in at $2,631, while larger companies had their employees down for $1,670. So, if you’re working for a smaller business, that deductible might feel a bit more substantial.
Looking back a bit, KFF’s 2025 Employer Health Benefits Survey also painted a picture of increasing deductibles for pretty much everyone. The number of workers facing deductibles of $2,000 or more for single coverage has been steadily creeping up. In 2025, it was 34%, which is pretty close to the 32% we saw in 2024. It’s a trend that suggests more and more people are responsible for a larger portion of their healthcare costs before their insurance really kicks in.
The Growing Burden of Employer-Sponsored Insurance
You might have heard people talk about employer-sponsored insurance (ESI) feeling like a struggle, and there’s some data to back that up. A look at The Struggle to Afford Employer-Sponsored Health Insurance (ESI) in 2024: A 50-State Review showed that in 2024 alone, the average annual cost for family coverage jumped by over $600, bringing the total to a whopping $24,540. That’s a 3% increase, and it’s not just premiums going up.
Deductibles have been on the rise too, and at a pretty decent clip. Between 2023 and 2024, deductibles for both individual and family plans increased by an average of more than 8%. Some folks might see it differently, but that’s a pretty sharp jump in a single year. It means people are having to shell out more cash out-of-pocket before their insurance starts covering things.
And then there are High Deductible Health Plans, or HDHPs. These have become more common. In fact, the share of employees enrolled in HDHPs jumped to over 50% across the U.S. in 2024. This isn’t uniform across the country, though. Arizona, for instance, had a massive 70.2% of its employees in HDHPs, while California was at the other end of the spectrum with only 32.0%. So, where you work geographically can make a big difference in the type of plan you’re offered and how much you might have to pay upfront for care.
Deductibles in the ACA Marketplace Landscape
It’s not just employer plans where deductibles are a thing. Plans sold on the ACA marketplaces have also seen their deductibles grow over the years. If you look at the period from 2014 to 2025, the average general annual deductible for a single person on a marketplace plan went from $1,217 up to $1,787. The family plan deductibles have also climbed. It’s a pattern that suggests more people in the marketplace are also facing higher upfront costs.
What’s interesting is how significant deductibles are when you’re looking at all the money you might spend on healthcare, outside of the premiums themselves. For people with employer coverage, deductibles made up a hefty 52% of those cost-sharing payments back in 2023. Copayments, the fixed amounts you pay for services like doctor visits, accounted for 22%, and coinsurance, where you pay a percentage of the cost, was around 26% to 28%. So, the deductible is often the biggest hurdle you have to clear when you need medical services.
Out-of-Pocket Spending Beyond the Deductible
So, we’ve talked about premiums and deductibles, but what about the actual cash people spend when they use healthcare services? According to How much do people with employer plans spend out-of-pocket on cost-sharing?, in 2023, those with employer-sponsored health insurance averaged $869 in out-of-pocket costs. It’s not a small sum, and it’s typically tied to the services people use most.
Outpatient services often lead the pack when it comes to these out-of-pocket expenses. It makes sense, as these are the more frequent visits and procedures people need. Inpatient services, like hospital stays, accounted for a smaller portion, averaging about $61 per person annually. But what might surprise some is how much prescription drugs contribute to out-of-pocket spending. In 2023, medications were responsible for a significant 57% of all out-of-pocket costs for people with employer coverage. This shows that even if your deductible is met, the cost of medications can still be a major financial concern.
The Rise of HDHPs and HSAs
You can’t really talk about higher deductibles without mentioning High Deductible Health Plans and Health Savings Accounts, or HSAs. The U.S. Bureau of Labor Statistics provides some good info on this in their High deductible health plans and health savings accounts fact sheet. They’ve noted that these types of plans are becoming more readily available to folks working in the private sector.
In 2024, about 50% of private industry workers had access to an HDHP. For the median worker with such a plan, the annual deductible was $2,750. That’s a substantial amount to have to cover. But alongside these plans, access to HSAs has also grown. Back in 2015, only about 24% of workers had access to an HSA. Fast forward to 2024, and that number has climbed to 39%. It’s particularly noticeable in larger companies; they’re much more likely to offer HSAs compared to smaller businesses. This suggests a shift towards plans that aim to give consumers more control and potential tax advantages, but it often comes with a higher immediate financial responsibility.
It’s a lot to take in, right? The cost of health insurance is always changing, and understanding where the money goes – from premiums to deductibles and out-of-pocket expenses – is crucial for making informed decisions about your healthcare. It’s worth looking into the specifics of your own plan and what it covers.
Frequently Asked Questions
What is the average annual premium for family health insurance in 2025?
The average annual family premium reached $26,993 in 2025, with workers contributing $6,850 toward the cost.
How much is the average individual deductible for a general annual deductible plan in 2025?
The average deductible for single coverage with a general annual deductible was $1,886 in 2025.
Do smaller companies have higher or lower deductibles than larger companies?
Smaller firms with 10 to 199 workers generally have higher deductibles. Their average individual deductible was $2,631, compared to $1,670 for larger firms in 2025.
What percentage of workers were enrolled in High Deductible Health Plans (HDHPs) in 2024?
Over 50% of employees in the U.S. were enrolled in HDHPs in 2024.
How did deductibles for single and family coverage change between 2023 and 2024?
Deductibles for both single and family coverage grew at an average rate of over 8% between 2023 and 2024.
What percentage of cost-sharing payments were deductibles for those with employer coverage in 2023?
Deductibles made up 52% of cost-sharing payments in 2023 for individuals with employer coverage.
What was the average out-of-pocket cost for people with employer coverage in 2023?
In 2023, people with employer coverage averaged $869 in out-of-pocket costs.
What percentage of out-of-pocket spending was attributed to prescription drugs in 2023?
Prescription drugs accounted for 57% of out-of-pocket spending in 2023.
How has access to Health Savings Accounts (HSAs) changed for private industry workers?
Access to HSAs for private industry workers increased from 24% in 2015 to 39% in 2024.
What is the median annual deductible for an HDHP for a worker in the private industry in 2024?
The median annual deductible for a worker with an HDHP was $2,750 in 2024.
It’s a lot of numbers and trends to keep track of, but knowing these figures might help you when you’re choosing your next health plan or just trying to budget for healthcare costs. Maybe it’s a good time to take a closer look at your own insurance situation and see how these trends might be affecting you personally.
