Major Companies Plan Health Benefit Cuts in 2027
Several large U.S. companies are planning significant changes to their employee health benefit programs starting in 2027, including restrictions on spousal coverage and reductions in drug benefits due to rising healthcare costs. Walt Disney Co., Starbucks, Bloomberg LP, Deloitte, and the City of Dallas are among those implementing these cuts as part of efforts to manage increasing medical expenses. Health plans project a nearly two-decade high for medical cost trends, with commercial health care costs expected to rise by 9% in 2027 according to PwC. These changes could place additional financial burdens on employees who may already struggle to afford out-of-pocket healthcare costs outside employer-sponsored coverage. A survey found that most working Americans consider job-linked health plans a critical factor when deciding whether to accept or remain at a position, with 87% saying it matters somewhat or more in their decision-making process. Companies are shifting the cost burden by increasing employee premium contributions and reducing benefits such as parental leave reimbursements. Consulting firm Marsh reported that nearly two-thirds of large employers plan to raise employees' share of health coverage costs next year.
