Taxing LI: Workers pay 9% more for employer-sponsored health benefits in 2026
According to a new survey from KFF, the average American worker now pays nearly $7,500 per year toward family health insurance coverage through an employer-sponsored plan.
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As open enrollment season gets underway, Long Island workers are facing another increase in the cost of employer-sponsored health insurance, adding to the financial pressures many families are already experiencing.
According to a new survey from KFF, the average American worker now pays nearly $7,500 per year toward family health insurance coverage through an employer-sponsored plan. That represents a 9% increase from 2025, making healthcare one of the fastest-growing household expenses for many families.
For Woodmere resident Patty Rizzo, the rising costs are becoming increasingly difficult to manage.
"You can't afford to buy your own groceries, you can't afford gas and then your health insurance goes up. It's terrible," Rizzo said.
The burden is not falling solely on employees. Employers are also paying significantly more to provide coverage.
The average total cost of a family health insurance premium, including both the employer and employee contributions, has climbed to approximately $28,000 annually, according to the KFF survey. That's a 5% increase from the previous year, outpacing both wage growth and inflation.
Insurance experts say workers should take time during open enrollment to carefully review all available coverage options rather than automatically renewing their current plan.
"Weigh out all your options and of course you could reach out to a broker or somebody to make sure you're looking at it correctly and you know your viable options," said James Donnelly, CEO of Safe Haven Insurance Agency.
Donnelly recommends comparing premiums, deductibles, copayments and provider networks. Workers who have access to coverage through a spouse's employer should also compare both plans to determine which option offers the best value.
However, rising healthcare expenses are not limited to monthly premiums.
Many workers are also seeing higher deductibles, meaning they must pay more out of pocket before their insurance coverage begins covering medical expenses. As deductibles increase, some consumers say they are becoming more hesitant to seek medical care.
"You start to avoid going to the doctor and going to emergency care and stuff like that," Rizzo said.
Healthcare experts caution against delaying preventive care in an effort to save money.
"All health plans cover preventative healthcare and wellness," Donnelly said. "Go for your physicals, go for your mammograms, make sure you're checked. Because you never know, in the blink of an eye, something could happen."
