Health Insurance Costs to Rise by 8.2% in 2027 Amid Fifth Consecutive Year of Increases
Employers are projecting an 8.2% increase in health insurance costs per employee for 2027, the largest rise since 2003 and marking five consecutive years of elevated expenses. Mercer's survey of over 1,800 U.S. employers shows that two-thirds plan to pass these increases on to employees through higher premiums or other cost-sharing mechanisms like deductibles and copays. The rising costs are driven by expensive new treatments such as GLP-1 weight-loss drugs, AI-enabled medical billing, hospital consolidation, and reduced government healthcare spending. These trends will likely reduce take-home pay for workers, especially those with family coverage who already contribute an average of $6,850 toward premiums annually. Experts warn that higher health insurance costs are squeezing overall compensation packages, as employers may allocate less money to wages when more is spent on benefits. This could further strain employees' budgets in a still-inflationary economic environment.
