Job Lock: Workers Hesitate to Leave Jobs Over Health Insurance Concerns

A recent study by the West Health-Gallup Center on Healthcare in America reveals that 24% of U.S. workers hesitate to leave their jobs due to concerns over losing employer-sponsored health insurance. This figure marks an 8 percentage point increase from 2021. Simultaneously, only 49% of Americans consistently afford healthcare, indicating a five-year low in affordability.

The issue of "job lock" is particularly prevalent among those burdened with medical debt, healthcare costs, chronic health conditions, and women. Ellyn Maese, a senior research consultant at Gallup, notes that when healthcare access is tied heavily to employment, it can reduce labor market efficiency, stall career progression, and impair quality of life.

Data from KFF shows that, as of March 2025, 60% of Americans under 65 are covered by employer-sponsored health plans. These plans predominantly offer significant cost coverage, with the average employee contribution last year being $1,440 for single coverage and $6,850 for a family of four. The end of enhanced premium tax credits in 2025 increased Affordable Care Act marketplace plan costs, leading some workers to retain employer-based insurance to avoid higher premiums.

Insurers in 16 states and Washington D.C. have forecast an average premium increase of 14% in ACA Marketplaces by 2027, according to the Peterson-KFF Health System Tracker. If these projections are accurate, premiums could climb by more than 33% over two years, maintaining pressure on individuals seeking coverage outside of employment-based insurance systems.