Average Family Health Insurance Costs Soared to Nearly $27,000 in 2025

The average health insurance plan for a family of four cost $26,993 in 2025, up 6% from 2024, according to the Kaiser Family Foundation’s latest annual survey. Indeed, the cost of providing health insurance has risen sharply, soaring 325% since 2000, with roughly 26.5% growth since 2020, as shown in the accompanying chart. (For previous surveys, including a discussion of methodological changes over time, click here.) The survey does not break out health costs for restaurants, but the average cost of a family health insurance plan in the service sector was $26,973, essentially the same as the headline number.

Employers continue to shoulder the majority of these expenses. In 2025, they contributed $20,143 toward premiums for a typical family plan, while employees paid $6,850.

For single coverage, the average cost reached $9,325, up 5% from the previous year. Like family coverage, single coverage premiums have climbed sharply—up nearly 24% since 2020, and more than 2.5 times higher than in 2000.

In its summary, KFF underscores a widely acknowledged concern: health insurance costs are projected to rise sharply again in 2026. This continued upward pressure will keep healthcare expenses front and center for employers and employees alike—including in the restaurant industry—as businesses prepare for open enrollment and plan for the year ahead.
Labor costs comprise 36.5% of total sales for a typical fullservice restaurant, as reported in the Restaurant Operations Data Abstract 2025, or 31.7% for a limited-service restaurant. These figures include wages, salaries, and employee benefits like health insurance. Many restaurants continue to express concern over rising expenses, as inflation compresses margins and puts additional pressure on operations. The increasing cost of health insurance further exacerbates these financial challenges, as highlighted by the data.

At the same time, it is important to note that health insurance remains an important and essential offering for many employees in the labor market, including for those in the restaurant and foodservice industry.

From that perspective, a record 81% of restaurant employees had health insurance coverage in 2023, according to data from the U.S. Census Bureau’s American Community Survey. Of those who have health insurance, 71% have private insurance, either in the employee’s name or someone else’s name, such as a parent or spouse. Coverage under a parent’s plan is likely common in the restaurant industry, as more than 4 in 10 restaurant employees are under the age of 26.