Starbucks workers report that health-insurance premiums increased starting Oct. 1, with some contributions nearly doubling and several employees saying they will drop coverage as a result. Individual accounts include a weekly premium jump from $130 to $170 and a biweekly rise from $70 to $122, forcing some to choose between medication and other essentials. The union filed an unfair labor practice charge seeking details about the changes, while Starbucks says it faces rising healthcare costs but remains committed to offering coverage beginning at 20 hours per week.
Rising Health-Insurance Premiums Have Starbucks Workers Choosing Between Coverage and Basics
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Starbucks employees across the U.S. say recent increases in company health-insurance premiums — effective Oct. 1 — have made coverage unaffordable for many, prompting some eligible workers to consider dropping their plans.
Workers Describe Steep Premium Hikes
A survey reported by The Guardian of more than 130 Starbucks partners from union and non-union stores found that premiums rose beginning Oct. 1, with some workers reporting nearly doubled contributions. Several respondents said the increases will force them to forgo coverage.
In Edina, Minnesota, barista Kaye-Lani Story said her weekly premium to cover herself and her son was set to increase from $130 to $170. "That is another $40 each week that I am not going to have in my income, if I choose to go with it, and that's just not something that financially I can afford," she said in the report.
"I make too much to qualify for coverage through the state. I don't make enough to keep my medical coverage through work, and so at this point, I just have to drop it completely," Story added, noting seasonal expenses such as heating and cooling further strain her budget.
In Woods Cross, Utah, barista Cory Wagner said his biweekly premium rose from $70 to $122. Wagner, who relies on heart medication, said the jump forces him to balance medication costs against groceries, utilities and gas.
Union Action and Company Response
Starbucks Workers United filed an unfair labor practice charge after saying the company did not provide requested information about the insurance changes, including what caused higher fees and whether Starbucks changed its contribution toward partners' healthcare costs.
A Starbucks spokesperson, in an email cited by The Guardian, did not comment on the labor charge but said the company, like many employers, is facing rising healthcare costs while remaining committed to providing quality, affordable coverage for full- and part-time partners, with eligibility beginning at 20 hours per week.
The premium increases come amid an ongoing union drive: the union says more than 700 stores have voted to unionize and that it represents over 12,000 employees. Workers have also raised broader concerns about company policies, including executive travel and store-level food waste, which they say add to frustration on the job.
What Workers Say This Means
Employees in the survey described real trade-offs: choosing between medical care and basic living expenses, losing access to state coverage after modest pay increases, and facing sudden cost increases that compound other financial pressures.
Note: All figures and quotes are drawn from reporting in The Guardian and from statements by affected partners.
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