American families are now paying more for health insurance than their mortgage. According to the Kaiser Family Foundation’s 2025 Employer Health Benefits Survey, the average family premium for employer-sponsored coverage reached $26,993 annually (or $2,249 per month), exceeding the national median mortgage payment of $2,025, according to the Mortgage Bankers Association.
For millions of middle-class families with job-based coverage, health insurance now competes directly with housing for budget dominance. While mortgage payments are typically locked in and difficult to change, experts say healthcare costs represent the variable expense families can adjust to protect their housing stability. Find out how below.
Why Healthcare Costs Keep Rising
The rising cost of medical treatments and technologies is driving premiums higher at an unsustainable pace. “The main driver impacting access and affordability is the cost of new innovation entering the marketplace — drugs and medical devices,” said Kent McKinney, healthcare economist and professor at Columbia University’s Joseph L. Mailman School of Public Health. “While we want to ensure that innovation remains rewarded at a fair price, health plans are being crushed by the weight of the prices associated with new innovation.”
Health plans respond by pushing greater levels of cost sharing to members in the form of higher monthly premiums and higher copayments, McKinney explained. This creates a cycle where families pay more upfront for coverage while also facing steeper out-of-pocket costs when they actually need care.
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What Makes the Problem Worse
A lack of price transparency compounds the affordability crisis. “You can’t shop for healthcare the way you shop for anything else and you don’t know what something costs until after you’ve received the care,” said Andy Schoonover, founder and CEO of CrowdHealth.
Schoonover regularly sees people with insurance getting $20,000 bills for procedures that cost $3,000 cash-pay at the surgery center across town — but nobody told them that. Most people overestimate how much coverage they have and underestimate what they’ll pay out-of-pocket, even with insurance. A family might pay $20,000 per year in premiums for a plan with an $8,000 deductible, only to use $2,000 in care.
How Families Can Manage Rising Healthcare Costs
Since mortgage payments are typically fixed, the key is finding savings on the healthcare side. “With healthcare costs now ranking as the top economic anxiety among Americans, it is crucial families make the most of their insurance options — both when comparing plans and by taking advantage of the coverage they are already enrolled in,” said Whitney Stidom, vice president of consumer enablement at eHealth.
Maximize Health Savings Accounts
Health Savings Accounts (HSAs) offer a triple tax advantage that can free up cash for housing costs. Contributions reduce your taxable income for the year, the money grows tax-free and withdrawals for qualified medical expenses are also tax-free. By contributing to an HSA early in the year, families can lower their tax bill while building a reserve for future healthcare costs.
Review Your Plan Every Year
Many families renew coverage without reassessing their options. Stidom said people who comparison-shopped Medicare Advantage plans through eHealth saved an average of about $1,800 on medical costs.
Take Advantage of Preventive Care
Most health insurance plans cover preventive exams, screenings and vaccines at no cost. Yet nearly 20% of people are unaware these appointments are free, according to a eHealth consumer survey. Using preventive care can help catch health issues early and avoid the surprise medical bills that strain budgets.
Review Prescription Drug Coverage
“Medicare Advantage beneficiaries who shop around can save over $800 per year on the cost of their prescription medications,” Stidom said, noting that plans vary widely in how drugs are covered and what patients pay out of pocket.
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This article originally appeared on GOBankingRates.com: Medical Premiums May Cost More Than Your Mortgage: How the Middle Class Can Balance Both
