Health insurance premiums jumped an average 7.5% for employer-sponsored plans heading into 2026. That’s roughly $150 more per month for family coverage, according to NPR’s recent analysis of employer benefits data.
But here’s the thing: Not all employers passed those costs to workers.
A small group of companies—mostly in tech, finance, and professional services—decided to absorb the entire increase rather than cut into employee paychecks. While most Americans face higher deductions from January paychecks, roughly 2.3 million workers will see zero premium changes because their employers ate the cost.
Why? The answer reveals how some companies view healthcare benefits as a competitive weapon in tight labor markets.
Which Companies Froze Health Insurance Premiums?
NPR didn’t name specific companies, but industry sources point to patterns. Large tech firms, financial institutions, and consulting companies with strong cash reserves led the premium freeze trend.
The common factors among companies holding premiums steady:
- Self-insured models: Companies with 5,000+ employees often self-insure, giving them direct control over premium decisions rather than accepting insurer rate hikes. They negotiate directly with healthcare providers and manage their own risk pools.
- Strong financial performance in 2024-2025. Cash-rich balance sheets matter.
- High employee turnover costs in competitive sectors like software engineering, where replacing one worker costs $75,000–$150,000 in recruiting and training expenses.
- Benefits as retention strategy. In industries where competitors poach talent aggressively, freezing premiums costs less than constant hiring.
Companies that absorbed the increase treat healthcare benefits like compensation. A $150 monthly premium freeze equals an $1,800 annual raise—without the payroll tax burden.
Why Most Employers Passed Costs to Workers
The majority of employers—representing about 158 million Americans with job-based coverage—raised employee premium contributions for 2026.
Three factors drove the hikes:
| Cost Driver | Impact on Premiums |
|---|---|
| Medical inflation | +5.8% above general inflation |
| Specialty drug costs | +12.4% year-over-year |
| Deferred care from 2023-2024 | +3.1% utilization spike |
Smaller employers (under 500 workers) face a tougher choice than giants. They lack negotiating leverage with insurers and can’t self-insure without massive risk. When their insurer—usually Aetna, Cigna, or UnitedHealthcare—hikes rates 7.5%, small businesses either pass it to employees or cut other benefits.
That math explains why premium freezes concentrate at large companies. A 5,000-employee firm absorbing $9 million in premium increases ($150/month × 12 months × 5,000 workers) might view it as a worthwhile retention investment. A 50-employee company can’t rationalize $90,000 in additional costs the same way.
What This Means for Your 2026 Paycheck
Check your December benefits enrollment notice carefully. Three scenarios exist:
Scenario 1: Premium freeze. Your employer absorbed the increase. Your January paycheck deduction stays identical to 2025 levels. You’re among the lucky 2.3 million.
Scenario 2: Partial increase. Your employer split the difference, raising your contribution 3-4% instead of the full 7.5%. This affects roughly 40 million workers whose companies cushioned but didn’t eliminate the hit.
Scenario 3: Full pass-through. Your premium jumps the entire 7.5%, costing an average family plan holder $150 more monthly or $1,800 annually. About 115 million workers fall here.
For individual coverage, the average increase hits $55/month ($660/year). Family coverage jumps $150/month ($1,800/year).
Run the math on your take-home pay now. If you gross $5,000 monthly and currently contribute $400 for family coverage, a 7.5% hike means $430 starting January. After taxes, that’s roughly $25 less in your checking account every payday.
How to Find Out if Your Company Made the Cut
Your HR department won’t advertise a premium freeze with fanfare, but you can check three ways:
- Compare your 2025 vs. 2026 enrollment documents side-by-side. Look at the “employee contribution” line item. Zero change = freeze.
- Ask HR directly: “Did our company absorb the 2026 premium increase, or are employees covering the cost?” They must answer honestly under ERISA disclosure rules.
- Check your payroll deduction. If the benefits line on your January pay stub matches December 2025, you’re good.
Companies that freeze premiums usually announce it during open enrollment (October-November) to boost participation and morale. If you heard nothing, assume an increase.
Should You Switch Jobs Over Health Insurance Costs?
Probably not solely for this reason, but benefits matter more than many workers realize.
Consider total compensation, not just salary. Two job offers:
- Company A: $90,000 salary, $500/month family premium (you pay $150)
- Company B: $92,000 salary, $600/month family premium (you pay $300)
Company B looks $2,000 better annually. But after subtracting the extra $1,800 in premiums, Company A wins by $200—plus potentially better coverage networks and lower deductibles.
The Bureau of Labor Statistics values employer-paid health benefits at 8-12% of total compensation. For a $75,000 salary, that’s $6,000–$9,000 in hidden value.
During job negotiations, ask: “What’s the employer vs. employee premium split?” Companies paying 80-90% of premiums deliver more value than those covering only 60-70%, even if base salary appears lower.
What Happens If You Can’t Afford the Increase
Three options exist if your employer raised premiums beyond your budget:
1. Drop to a lower-tier plan. Switch from PPO to HMO or choose a high-deductible health plan (HDHP) with an HSA. Monthly premiums drop $100–$200, but you’ll pay more when using healthcare. Makes sense if you’re healthy and rarely see doctors.
2. Re-evaluate family coverage. If your spouse has employer coverage, compare total household costs of two individual plans vs. one family plan. Sometimes splitting saves money, especially if one employer subsidizes premiums generously.
3. Consider marketplace plans. If your employer makes coverage “unaffordable” under ACA rules (employee premium exceeds 9.12% of household income in 2025), you qualify for subsidized marketplace coverage instead. A family earning $80,000 paying over $608/month for individual coverage hits this threshold.
Before dropping employer coverage, verify your marketplace eligibility. The Healthcare.gov calculator runs the numbers in under 5 minutes.
Frequently Asked Questions
Why are health insurance premiums rising 7.5% in 2026?
Three main factors drive the increase: medical inflation running 5.8% above general inflation, specialty drug costs jumping 12.4%, and a utilization spike of 3.1% as people catch up on deferred care from 2023-2024. Insurers pass these costs to employers, who then decide whether to absorb them or pass them to workers.
How do I know if my company is raising my health insurance premium?
Compare your 2025 and 2026 benefits enrollment documents side-by-side, focusing on the “employee contribution” amount. If the numbers match, your employer absorbed the increase. You can also ask HR directly: “Did our company absorb the 2026 premium increase?” They’re required to answer under ERISA disclosure rules. Finally, check your January paycheck—if the health insurance deduction matches December 2025, you’re protected from the hike.
Can I switch to my spouse’s health insurance if mine gets too expensive?
Yes, but only during specific windows. A premium increase typically qualifies as a “qualifying life event” that allows mid-year changes. You have 30-60 days (varies by employer) after receiving your rate increase notice to switch to your spouse’s plan. Compare total household costs carefully—sometimes two individual plans cost less than one family plan, especially if one employer subsidizes premiums more generously than the other.
What’s considered an “unaffordable” employer health plan under ACA rules?
For 2025, employer coverage is “unaffordable” if your premium for individual (not family) coverage exceeds 9.12% of your household income. For a family earning $80,000, that’s $608 monthly. If your employer charges more than this for individual coverage, you qualify for subsidized marketplace plans instead. Family coverage costs don’t count for this calculation—only the individual premium matters for ACA affordability rules.
Should I drop to a high-deductible health plan to save on premiums?
It depends on your health status and financial situation. HDHPs typically save $100–$200 monthly in premiums but come with deductibles of $3,000–$7,000 for families. If you’re healthy, rarely visit doctors, and can afford unexpected medical bills, the premium savings make sense. Plus, you can contribute to a tax-advantaged Health Savings Account (HSA). But if you have chronic conditions requiring regular care, the higher out-of-pocket costs will likely exceed your premium savings. Run the math on your expected annual healthcare spending before switching.
Bottom Line
The 2026 premium landscape splits Americans into two groups: those whose employers shield them from healthcare inflation, and everyone else.
If you’re among the 2.3 million with frozen premiums, thank your benefits team. If you’re facing a $150 monthly jump, run the numbers now—before January’s first paycheck surprises you. Compare plan tiers, check spouse coverage options, and verify marketplace eligibility if costs exceed the affordability threshold.
Healthcare benefits represent 8-12% of your total compensation. A premium freeze is effectively a $1,800 raise for family coverage. When job hunting, negotiate total compensation—not just salary—and ask explicitly about employer premium contributions. The right answer to “How much do you pay toward health insurance?” matters as much as the base salary number.