Skip to content

Employer health insurance costs expected to rise about 11% in 2027

financeSep 2, 202635261

A new U.S. survey projects employer health benefit costs will rise about 11 percent in 2027 unless employers reduce benefits, the largest projected jump for employers in more than two decades. Separately, Mercer’s estimate projects an 8.2 percent increase in annual employer health benefit costs for 2027. The survey and reporting say this would be the biggest spike in employer health spending since 2003 and follow steady increases since 2022. Employers are already signaling they may respond by trimming benefits or shifting more costs to workers through higher premiums, deductibles, and copays. The fastest-growing component of employer health spending is pharmacy, a factor named in reporting as intensifying pressure on costs and pushing scrutiny of pharmacy benefit managers. Analysts warn that rising employer costs could feed into wage stagnation or reduced workplace benefits and add pressure on public programs and marketplaces, where separate filings suggest steep premium increases next year.

1 source