Employer Health Costs Projected to Rise 8.2% in 2027
Employer-sponsored health-benefit costs per employee are projected to rise by 8.2% in 2027, marking the largest increase since 2003 and continuing a fifth consecutive year of growth according to Marsh's National Survey of Employer-Sponsored Health Plans. This surge is prompting many workers nearing retirement age—particularly those at 65—to consider switching from employer plans to Medicare due to rising costs. A key consideration for retirees who are still working or contributing to health savings accounts (HSAs) is that enrolling in any part of Medicare, including premium-free Part A, ends HSA eligibility starting the month coverage begins. This means contributions must stop immediately and annual limits become prorated based on remaining eligible months. The timing of Social Security applications also matters: filing after age 65 triggers automatic enrollment into Part A up to six months retroactively, which can lead to taxable excess HSA contributions if not managed carefully.
Topics: health insurance costs HSA contributions Medicare enrollment retirement planning