Starbucks raises health insurance premiums, sparking worker tension - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
September 8, 2026 Newswires
Share
Share
Post
Email

Starbucks raises health insurance premiums, sparking worker tension

Megan Ulu-Lani Boyanton, The Seattle TimesSeattle Times

Rising costs for health insurance premiums offered to Starbucks workers are sparking tension.

With the fiscal year set to kick off for the Seattle-based coffee giant next month, benefits enrollment recently opened, and some workers have been caught off guard with nearly double the price tag for health insurance and lower share of employer contribution to the cost.

Starbucks told The Seattle Times that some workers experienced larger premium increases," though the majority "saw more modest changes." Both corporate and retail employees have noticed the adjustments.

The increase shift rattled a number of workers because Starbucks has built a reputation around providing gold-standard benefits at reasonable price points.

“The company is dramatically raising the workers’ share of the monthly cost for premiums, even doubling that cost in some cases, pricing even more baristas out of the healthcare we need," Jasmine Leli, Starbucks barista and union bargaining delegate from Buffalo, N.Y., said in a statement.

A remote corporate worker, who asked to remain anonymous to protect her job, told The Times that she had to switch plans to accommodate the price difference.

Last year, Starbucks covered 85% of her healthcare premium, she said, so she paid about $25 per weekly paycheck. This time around, for the same plan, the amount more than doubled to about $55 per weekly paycheck.

The employee said she decided to go with a cheaper option. Starbucks will subsidize 81% of the new healthcare premium, and she'll pay an extra $10 per weekly paycheck.

Starbucks defended its latest decision by pointing to climbing healthcare costs for American employers. Aon, a professional services firm, predicted a hike of almost 10% to be shelled out by employers next year, with the average cost per worker expected to exceed $19,000 each.

"We continue to face rising healthcare costs while remaining committed to providing quality, affordable healthcare coverage for full-time and part-time partners at Starbucks, beginning at just 20 hours per week," Starbucks spokesperson Betsy McManus said in a statement.

The company offers over 25 healthcare plan options through several carriers, Starbucks said, and costs fluctuate based on choice of carrier, plan design, geography and more.

Starbucks added that it still covers most premium costs.

Starbucks Workers United, the union that represents thousands of baristas, confirmed it's heard "the company changed the percentage they are paying and forcing workers to pay up to twice as much of their co-premium," it said in a statement.

Workers United sent a request for further information to Starbucks last month. The union hadn't heard back as of Tuesday.

"Starbucks should not be able to make life-altering decisions about our benefits while the baristas who make its profits possible struggle to get by, Leli said.

© 2026 The Seattle Times. Visit www.seattletimes.com. Distributed by Tribune Content Agency, LLC.

Older

Federal Reserve Bank Details Findings in Environmental and Resource Economics (The Effects of Competition In the Retail Gasoline Industry): Economics – Environmental and Resource Economics

Newer

VAN HOLLEN JOINS GALLEGO, COLLEAGUES, IN SOUNDING ALARM ON FED CHAIR WARSH'S PLAN TO SCALE BACK INTEREST RATE MEETING SCHEDULE

Advisor News

  • How to support an entrepreneur client with multiple businesses
  • Could a narrower focus help grow your practice?
  • U.S. debt hits $40 trillion: how to support concerned clients
  • Flourish brings private-bank-like cash solution to MassMutual’s network
  • Majority of Americans concerned recent market highs are unsustainable
More Advisor News

Annuity News

  • MassMutual Expands Lending Options With New Secured Credit Line
  • Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
  • Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
  • IMOs get frustrated with slow carrier adoption of faster technology
  • New class-action lawsuit targets Delaware Life over annuity disclosures
More Annuity News

Health/Employee Benefits News

  • Former Speaker joins Sewell on healthcare panel
  • A $500 Obamacare refund could be headed to Wyoming residents. Here's who gets paid
  • State Health Plan loses bid to stop Atrium program, warns of $50 monthly premium hike
  • Your questions answered on Medicare open enrollment
  • GREEN CARD PROCESSING BACKLOGS FOR REFUGEES AND ASYLEES COULD HAVE IMPLICATIONS FOR HEALTH COVERAGE AND CARE
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • AM Best Upgrades Credit Ratings of Fidelity Life Association, A Legal Reserve Life Insurance Company; Affirms Credit Ratings of Industrial Alliance Insurance and Financial Services Inc. and Its Life/Health Subsidiaries
  • 777 Partners founder pleads guilty to $500 million fraud scheme
  • AM Best Affirms Credit Ratings of Luen Fung Hang Insurance Company Limited
  • Navigating GenAI risk in insurance
  • SBLI Lowers OmniTrak Term Rates and Expands Underwriting Flexibility
Sponsor
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.