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Employer Health Benefit Costs Expected To Rise Sharply In 2027

Growing demand for GLP-1 medications and new expenses associated with AI-based medical documentation are also adding pressure.

Employer health costs expected to see sharpest increase in 20 years: Survey. Pic via(@thehill)

Employer health benefit costs are expected to rise by an average of 8.2% in 2027, marking their sharpest increase in more than 20 years, according to Marsh’s 2026 National Survey of Employer-Sponsored Health Plans.

The survey of more than 1,800 employers found that rising hospital prices, prescription drug costs and cancer treatments are driving much of the increase.

Growing demand for GLP-1 medications and new expenses associated with AI-based medical documentation are also adding pressure.

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About 59% of employers said they plan to make cost-cutting changes in 2027, including increasing deductibles or limiting health coverage for spouses. These measures could increase employees’ premiums and out-of-pocket expenses.

Some companies are exploring direct contracts with hospitals or considering smaller pharmacy benefit managers to improve cost transparency.

The projected increase would mark the fifth consecutive year of elevated health benefit costs, affecting millions of Americans who rely on employer-sponsored insurance.

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