The health insurance squeeze hitting NJ paychecks and doctor visits

💸 Double hit: Large employers are raising workers' share of premiums, while some are also increasing deductibles and other medical costs.
🏥 Cost shifting: 21% of large employers increased deductibles or other cost-sharing for most services in response to projected 2026 costs.
💊 Skipping care: A New Jersey survey found 62% of respondents delayed or went without medical care because of cost.

You pay thousands of dollars every year for health insurance. The premiums keep going up. And now, some employers are making workers pay even more when they actually need to seek medical care.

It's a financial double whammy for New Jersey families who are already struggling with the cost of just about everything.

The latest national survey of employer-sponsored health insurance reveals that companies aren't just raising the amount employees contribute toward their coverage. Some are also increasing deductibles and other out-of-pocket expenses.

And that means your health insurance could cost more before you get sick — and after.

Employers shift more health insurance costs to workers

According to KFF's 2026 Employer Health Benefits Survey, 21% of large employers increased deductibles or other cost-sharing for most medical services in response to projected health plan costs.

Even more striking, 44% of large employers increased the share of insurance premiums paid by workers.

Large employers are defined as those with at least 200 workers. Across employers of all sizes, the corresponding figures were 4% and 18%.

While these are national findings, not New Jersey-specific percentages, they help illustrate the choices employers are making as health care costs continue climbing and the difficult choices many employees face when needing medical care.

The average annual premium for employer-sponsored family coverage reached $28,303 nationally in 2026, a 5% increase.

Workers contributed an average of $7,471 toward that coverage, up 9% from last year.

That's roughly $623 a month before paying a single medical bill.

The 44% and 21% figures track separate changes to the plan with the most enrollees at employers that offer health benefits and have at least 200 workers.

Sources include KFF’s 2026 employer survey, KFF’s state deductible data and Altarum’s New Jersey affordability survey.

Deductibles create another financial burden

Here's where the real pain can begin.

The average annual deductible for employer-sponsored family coverage in New Jersey was $3,280 in 2025, according to KFF's state data.

For individual coverage, the average was $1,825.

Those figures are how much you must pay out of pocket BEFORE your insurance starts paying its share. Certain services, including some preventive care, are covered without meeting the deductible.

Nationally, 38% of covered workers have individual deductibles of $2,000 or more.

And once you meet that higher deductible, that doesn't mean the bills stop.

Copays, prescriptions and hospital bills add up

The latest KFF survey found average copays of $27 for primary care appointments and $46 for specialist visits among workers whose plans use those charges.

Prescription costs vary by medication and insurance plan.

Hospitalizations can be particularly expensive. Among workers whose plans require coinsurance for hospital admissions, the average rate is 20% of covered costs.

Some plans impose additional copays or other charges.

For a family managing a chronic illness, recurring prescriptions or an unexpected medical emergency, those expenses can add up quickly.

The fear of the costs of getting sick are taking a huge toll on wellness.

New Jersey residents are delaying medical treatment

A July 2026 survey of more than 1,400 New Jersey adults by Altarum's Healthcare Value Hub found that 62% delayed or went without medical care because of cost.

Sixty-five percent reported at least one health care affordability burden.

In the midst of rising costs for just about everything in New Jersey, paying for medical care has become an increasing burden for many residents.

Health insurance is supposed to protect families from overwhelming medical expenses.

Increasingly, the question isn't simply whether you can afford health insurance.

For many families in New Jersey, it's whether they can afford to use it.

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