Employers expect health insurance premiums to increase by some 8% in 2025, according to a new survey from the International Foundation of Employee Benefit Plans (IFEBP). That follows a 7% price hike in 2024. The average annual premium for family coverage now tops $25,572, as tracked by KFF, a consultancy.

What’s driving the price hikes? Catastrophic claims, specialty prescription drugs, and chronic medical conditions. “A cancer or a musculoskeletal diagnosis can result in a strong expense impact on any employer’s health insurance plan,” says Julie Stich, vice president of Content at the IFEBP. “So can chronic conditions such as diabetes ...