Rising Health Costs Shrink Employee Insurance Access

Higher premiums and reduced subsidies are causing more U.S. workers to forego employer-sponsored health coverage.

Updated on Oct. 22, 2026 in Healthcare

Bold flat-color editorial illustration of a heavy stone plinth holding a sphere, symbolizing the burden of rising healthcare costs. — Rising health insurance premiums and the expiration of federal subsidies have led to a 11.2% uninsured rate among working-age U.S. adults as of 2026. AI Illustration. Upload story photo >

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Do you feel that health care costs for your household have become unsustainable?

As of 2026, the share of working-age U.S. adults without health insurance has risen to 11.2%. This increase follows the expiration of Affordable Care Act marketplace subsidies in 2025 and consistent growth in employer-sponsored premiums.

Why it matters

Higher costs force employers to shift more financial responsibility onto workers while causing some staff to drop coverage entirely. Simultaneously, hospitals are raising prices to compensate for the growing population of uninsured patients.

Workers pay an average of $7,471 annually for employer-sponsored family premiums, while small-firm employees face higher average costs of $9,687. Meanwhile, ACA marketplace premiums surged by an average of 58% in 2026.

The players

The Stockpot

A restaurant in Hampton Roads, Virginia, that has struggled with triple-digit increases in health insurance premiums since 2018.

Kokoro

A restaurant based in Denver, Colorado, that is projected to spend $200,000 on employee health premiums in 2026.

Business Group on Health

A non-profit organization representing large employers that projects total health care costs to rise 9% in 2027.

The details

Employers are passing significant expenses to staff, leading to a 34% rise in average deductibles over the last decade. Restaurants like The Stockpot have seen premiums triple since 2018, resulting in only 35% of their eligible staff opting into offered plans.

In 2003, health benefit costs became a primary focus for long-term economic tracking.
By 2018, The Stockpot initiated its health insurance offerings.
In 2020, Congress enacted the No Surprises Act.
In 2024, the working-age uninsured rate stood at 8.9%.
In 2026, the national uninsured rate climbed to 11.2%.

Market Landscape

This trend follows the expiration of the Affordable Care Act marketplace subsidies, which previously kept costs lower for many consumers. The resulting shift forces a competitive disadvantage for smaller firms compared to larger corporations that can better absorb rising premiums.

Average workers should prepare for higher payroll deductions and larger out-of-pocket deductibles when utilizing employer-sponsored plans. Employees at small businesses may face even steeper annual costs for family coverage compared to those at larger firms.

The takeaway

Rising costs are fundamentally reshaping the relationship between employment and health security for millions of Americans. Workers should prioritize reviewing their specific plan deductibles and annual premium contributions during upcoming open enrollment periods.