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Workers Brace for Steepest Health Costs Since 2003
4 Sep
Summary
- Health benefit costs per employee to rise 8.2% in 2027.
- Employers plan cost-saving measures, raising deductibles.
- GLP-1 drugs contribute to soaring prescription drug prices.
Health insurance costs for employees are projected to increase significantly in 2027, with total health benefit costs per employee expected to rise by an average of 8.2%. This marks the steepest increase since 2003. Employers are planning cost-saving strategies, such as raising deductibles, which may lower monthly premiums but increase out-of-pocket expenses for workers.
The surge in health plan costs is attributed to several factors, including the rising treatment costs for serious illnesses and the increasing prices of prescription drugs, notably GLP-1 medications used for weight loss. These cost increases are prompting some employers to reassess their coverage for these drugs.
Historically, employees have shared approximately 20% of health plan costs, a split that has remained consistent. As premiums climb, it is anticipated that employees will bear a greater financial burden, both through higher paycheck deductions and increased out-of-pocket spending. This trend is expected to add to the financial pressures faced by millions of Americans during the upcoming open enrollment season.
