Key facts
- Small business employees pay more for family health coverage than workers at larger firms.
- Workers at small firms pay an average of 37% of the family health premium.
- The average deductible for small firm workers is nearly $1,000 higher than at large firms.
Workers at small businesses are bearing a disproportionate burden of rising health insurance costs, particularly for family coverage. A new KFF survey reveals that employees at firms with 10 to 199 workers saw their annual contributions for family plans increase by 9% to $9,687 between 2025 and 2026. This is significantly higher than the average worker contribution across all firms, which rose to $7,471. Furthermore, nearly one-third of small-business employees face annual contributions exceeding $12,000, more than double the rate at larger companies. Small firms also offer benefits to a smaller percentage of their workforce (66%) compared to larger firms (98%). Workers at smaller businesses pay an average of 37% of their family's premium, compared to 25% at larger firms, and face deductibles nearly $1,000 higher.