Worker Health Costs Set to Soar 8.2% in 2027

Employers nationwide are anticipating a sharp rise in health insurance expenses for 2027. Consulting firm Marsh forecasts a 8.2% increase in total health benefit costs per employee, representing the most significant jump since 2003. This projection assumes employers will implement cost-saving measures such as higher deductibles. Without these steps, employer costs would escalate by an average of 11%.

The escalating costs are attributed to several factors, including increased treatment expenses for serious illnesses and the growing price of prescription drugs, notably GLP-1 medications. These rising costs are prompting some employers to reconsider coverage for certain treatments.

Workers are likely to bear a greater portion of these rising health benefit expenses. While the split between employer and employee contributions has historically been consistent, many employers, facing sustained cost increases, may have no alternative but to pass more expenses onto their employees through higher paycheck deductions and out-of-pocket costs.

This projected increase adds to the financial pressure many Americans face. An August forecast from Aon predicted that workers would spend an average of nearly $5,300 annually on health insurance premiums and out-of-pocket costs in 2026, a 7.9% rise from the previous year.