Work Plan Too Expensive for Your Family? How to Cover Your Spouse and Kids Separately

Your job might cover most of your own premium, but adding your spouse and kids is another story. If the family price on your work plan made you wince during your company's open enrollment, you're not alone, and you may have other options.

Family coverage at work keeps getting more expensive

According to KFF's 2026 Employer Health Benefits Survey, workers now pay about $7,471 a year on average toward family coverage, up 9% from last year. At small companies, workers pay even more, about $9,687 a year on average. The total family premium, counting what employers pay, is now over $28,000.

The split approach

Many families keep the worker on the employer plan, since the employer usually pays most of that cost, and move the spouse and kids to a separate plan. Depending on your situation, that separate plan could be a private plan or a Marketplace plan.

Run the numbers both ways. Compare what you pay now for family coverage with what you'd pay for just you on the work plan, plus a separate plan for everyone else.

Can your family get a Marketplace tax credit?

Under current rules, whether your spouse and kids can get a Marketplace tax credit depends on what family coverage costs at your job. For 2027, if the family premium you'd pay is more than 10.22% of your household income, your family members may qualify. Your household income also generally needs to be at or below 400% of the federal poverty level, about $132,000 for a family of four for 2027 coverage.

Private plans for your family

Private plans are priced on age, location, and health instead of income. For a healthy spouse and kids, they can cost less than adding them to a work plan. They may ask health questions, and benefits differ from plan to plan, so compare the details carefully.

Coverage for kids

If your household income is on the lower side, your kids may qualify for your state's children's health program. In Florida, that's Florida KidCare.

Watch the timing

Employer plans usually only let you drop family members during your company's open enrollment or after a qualifying life event. Make sure the new coverage starts before the old coverage ends so nobody has a gap. Check the rules with your HR team before you make a change.

See what the split would cost

Send me your family's ages, your zip code, and what you pay now for family coverage at work. I'll show you what covering your spouse and kids separately would cost, so you can see if it's worth switching.