Health Care Workers Struggle With Rising Insurance Costs

Summary

Health care workers in the U.S. are struggling to afford health insurance, with rising premiums forcing some to drop coverage or cut benefits. Jack Dillon, executive director of the Association for Independent Medicine, reported a 22.5% premium increase at his practice. Employers, including medical practices, face rising health benefit costs, with Mercer predicting an 8.2% jump in 2027. Many companies plan to shift more of the cost to employees. Some health care workers, like a nurse practitioner in Idaho, have had to make difficult tradeoffs, while others, like a physician and pharmacist, have dropped coverage entirely. The American Nurses Association warned that rising costs could impact patient care and safety.

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The numbers tell one story.

Health insurance costs are rising faster than wages.

Employers are shifting more of the burden to employees.

Health care workers are making tough choices about coverage.

The crisis affects both workers and patients.

The system is under pressure from all sides.

Author: Evan Null

Caregivers making tradeoffs

For some health care workers, the pressures of rising insurance costs have followed them into their own homes. Samantha LeGault, an Idaho nurse practitioner, saw her family’s premium jump from $700 to $1,500 this year. She had to give up dental coverage to prioritize her children’s care. Meanwhile, a primary care physician and pharmacist in Idaho dropped coverage for themselves and their children after premiums rose to nearly $1,600 a month. They now pay for care out of pocket using a health savings account. These examples show how even those in the health care field are not immune to the affordability crisis.

The issue is not limited to individual choices. In 2024, 10.5% of health care support workers were uninsured, more than twice the rate of health care practitioners. The cost of buying insurance independently also rose sharply this year, with average monthly payments increasing 58% and deductibles rising 37%. These trends are forcing many to make difficult decisions about their health and financial security.

The American Nurses Association warned that rising health insurance costs could have broader consequences, including impacts on patient care. About 15% of nurses reported holding more than one job, and 42% worked more than 40 hours a week. Many cited the need for more income as the reason. The association said these pressures could lead to greater fatigue, stress, and burnout, which could affect the quality of care patients receive.

For Jack Dillon, the hardest part is what these choices could mean for the people caring for patients. “You’re trying to take care of the people that are helping you take care of patients,” he said. This highlights the ripple effect of the affordability crisis, which extends beyond individual workers to the entire health care system.

The situation underscores a growing challenge for employers and employees alike. As health insurance costs continue to rise, the tradeoffs become more difficult, and the impact on both workers and patients becomes more pronounced. The system is under pressure from all sides, and the solutions remain unclear.

More than a household expense

The American Nurses Association warned that the consequences of rising costs may eventually reach patients, too. About 15% of nurses reported holding more than one job in the 2024 National Nursing Workforce Study. In separate ANA survey data collected from working nurses between June 2024 and September 2026, roughly 42% said they worked more than 40 hours a week. Among that group, the most commonly cited reason for working additional hours or overtime was the need for more income.

“Rising health insurance costs are more than a household budget concern for healthcare workers,” ANA President Jennifer Mensik Kennedy said in a statement to Fortune. “They are a workforce, patient-care, and patient-safety issue.” The association said nurses who feel compelled to add shifts or jobs to keep pace with premiums and other medical expenses can experience greater fatigue, stress, and burnout—adding pressure to a profession already facing worker shortages.

For Dillon, the hardest part is what those choices could mean for the people caring for patients. “You’re trying to take care of the people that are helping you take care of patients,” he said. This highlights the ripple effect of the affordability crisis, which extends beyond individual workers to the entire health care system.

The crisis is not just about individual choices—it’s about the sustainability of the health care system. Employers are struggling to balance costs and coverage, while workers are making tough decisions about their health and financial security. The long-term effects of these pressures are still unfolding, and the full impact is yet to be seen.

Employers feel the strain

The rising cost of health insurance is not just a problem for employees—it’s a burden for employers as well. Companies are facing steep increases in the cost of providing health benefits, with Mercer reporting an expected 8.2% rise in 2027. This is the steepest increase since 2003 and the fifth consecutive year of elevated growth. Two-thirds of companies with at least 500 employees plan to raise workers’ share of premiums, shifting more of the financial burden onto employees.

Nick Stefanizzi, CEO of Northwell Direct, said the rising costs eat into money that could be invested in wages. This creates a difficult tradeoff for employers, who must choose between increasing wages or maintaining health benefits. Some independent practices are considering dropping health benefits altogether in favor of offering higher wages, but this could lead to reduced coverage and fewer resources for patient care.

For small medical practices, the financial pressure is particularly acute. Jack Dillon, executive director of the Association for Independent Medicine, said he has heard more concern about insurance costs this year than in a long time. His own practice faced a 22.5% increase, forcing it to choose between absorbing the cost or raising employees’ share of their premiums. This kind of decision is becoming more common as health insurance costs continue to climb.

The strain on employers is also affecting the broader economy. As more companies raise employee premiums or reduce benefits, workers may have less disposable income, which could impact consumer spending and economic growth. This creates a complex web of challenges for businesses, employees, and the health care system as a whole.

The situation highlights the need for a broader conversation about the sustainability of employer-sponsored health insurance. As costs continue to rise, the long-term viability of this model is in question, and new solutions may be needed to ensure that both workers and employers can manage the financial burden of health care.

Health insurance as a business

Health insurance is not just a benefit—it’s a business decision. Employers must weigh the cost of coverage against the need to attract and retain talent. As premiums rise, many are reevaluating how much they can afford to spend on health benefits. Some are shifting more of the cost to employees, while others are reducing coverage or eliminating it altogether. This trend is particularly evident in the health care sector, where providers are also struggling with the financial burden of insurance costs.

For health care workers, the situation is especially ironic. They are on the front lines of patient care, yet many are unable to afford the same coverage they provide to others. This creates a paradox where the people who keep the system running are also the ones most affected by its rising costs. The result is a growing number of workers who are either underinsured or completely without coverage.

The crisis is also affecting the quality of care. As nurses and other health care workers take on more hours or multiple jobs to make ends meet, the risk of burnout and fatigue increases. This can lead to errors, reduced patient satisfaction, and a decline in the overall quality of care. The American Nurses Association has warned that these pressures could have serious consequences for patient safety and outcomes.

The situation is not just a financial issue—it’s a human one. Health care workers are making difficult choices about their own health and the health of their families. Some are sacrificing dental coverage, while others are paying for care out of pocket. These decisions reflect the broader struggle to afford health insurance in a system that is becoming increasingly unaffordable for many.

As the cost of health insurance continues to rise, the pressure on both employers and employees will only grow. The long-term effects of this crisis are still unfolding, and the solutions remain uncertain. What is clear is that the current model of employer-sponsored health insurance is under significant strain, and new approaches may be needed to ensure that workers can access the care they need.

The cost of care

The rising cost of health insurance is not just a financial issue—it’s a systemic one. Employers are struggling to keep up with the increasing burden of providing coverage, while employees are facing higher premiums and more out-of-pocket costs. This creates a cycle where workers have less disposable income, and employers have less flexibility in their budgets. The result is a growing number of people who are either underinsured or completely without coverage, even in the health care industry.

For many health care workers, the situation is particularly ironic. They are the ones who help patients access care, yet they are often unable to afford the same coverage themselves. This creates a paradox where the people who keep the system running are also the ones most affected by its rising costs. The result is a growing number of workers who are either underinsured or completely without coverage.

The impact of these rising costs is not limited to individual workers—it affects the entire health care system. As more workers are forced to make difficult choices about their health and financial security, the quality of care may decline. Nurses and other health care professionals are taking on more hours or multiple jobs to make ends meet, which can lead to burnout, fatigue, and errors. This creates a dangerous cycle that could have serious consequences for patient safety and outcomes.

The American Nurses Association has warned that rising health insurance costs are a workforce, patient-care, and patient-safety issue. The association is calling for a broader conversation about the sustainability of the current model of health care financing. As costs continue to rise, the long-term viability of employer-sponsored health insurance is in question, and new solutions may be needed to ensure that workers can access the care they need.

The crisis is a reminder that health care is not just a service—it’s a business. Employers must balance the cost of coverage with the need to attract and retain talent. As premiums continue to rise, the pressure on both employers and employees will only grow. The long-term effects of this crisis are still unfolding, and the solutions remain uncertain.