--- title: "BLS Employment Cost Index | 2026 Employer Health Insurance Hikes" description: "Employment costs see the lowest growth in five years at 3.5%, but 2026 brings a healthcare \"affordability crunch.\" Explore why premiums are surging 6.7% due to drug costs and the expiration of ACA tax credits." url: "https://wimlaw.com/publications/newsletters/employment-healthcare-premiums" date: "2026-06-10T18:21:45+00:00" language: "en-US" --- # Employment Costs Rise at Lowest Level in Five Years Written on February 04, 2026. *Tag(s):* [Department of Labor (DOL)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=56:dol), [FLSA (Fair Labor Standards Act)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=70:flsa), [Affordable Care Act (ACA)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=120:aca), [Overtime](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=135:overtime), [February 2026 Newsletter](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=212:february-2026-newsletter) According to a December 2025 report from the Bureau of Labor Statistics (BLS), increases in wages and benefits increased 3.5% in the twelve months ending last September. The BLS indicates that hiring fell and layoffs climbed to the highest level since 2023. At the same time, voluntary quits fell to the lowest level since 2020, indicating declining worker confidence in finding another job. These shifts coincide with lower wage growth. Wages and salaries grew 3.5% from a year earlier. At the same time, healthcare costs are increasing as the cost of insurance per employee is expected to rise 6.7% in 2026, the highest increase in 15 years. Employers are having modest success in cost reduction in measures such as raising deductibles, and a majority of Americans still get their health insurance through their employer. According to recent surveys, the average premium for a single individual in an employer health plan in 2025 was $9,225, growing by 24% in the past five years. At the same time, the average family premium was nearly $27,000. The main driver of rising premiums appear to be prescription drug costs, but other reasons include chronic disease, higher use of services, and hospital prices. Small businesses will see premium hikes of around 11%. Those participating in ObamaCare marketplaces will see increased charges of around 26%, with factors including rising hospital costs, the growing popularity of expensive weight-loss drugs, and the threat of tariffs. Most enrollees in ObamaCare will be affected by the expiration of the enhanced tax credits, that result on average in a 114% increase in premium payments. This article is part of our February 2026 Newsletter. 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