Getting health insurance from your job will be extra pricey for 2027

Employer Health Plans Could Bring Steeper Bills in 2027

Activelifezero.com – Employees preparing to select workplace health coverage for 2027 may encounter significantly higher costs, as employers face another sharp rise in spending on medical benefits. The pressure is expected to affect both the amount workers contribute from their paychecks and what they pay when they need care.

Aon projects that employer health care costs will rise 9.5% next year before companies adjust their plans to soften the impact. Similar forecasts from consulting firms and industry organizations point to a fourth consecutive year of substantial increases after a period when medical-cost growth had been comparatively modest.

The new increases arrive as many households are already balancing high everyday expenses. Health plan decisions could become especially visible during annual enrollment, when workers compare premiums, deductibles, copays and prescription coverage.

“The affordability crisis is real,” said Todor Penev, head of US health analytics at Aon. “It’s going to be much more noticeable with annual enrollment.”

Premiums and out-of-pocket costs are both under pressure

Employers have used a range of approaches to limit health-benefit spending in recent years, but many have fewer options left that do not shift more of the burden onto employees. Penev said some businesses may need to make more consequential changes to their benefits.

Several factors are contributing to the sustained expense growth. Americans are using more health services, while treatments for cancer and other conditions can carry high prices. Demand for costly obesity medicines also remains a major element in employer health plan costs.

Workers have already seen the effects. KFF’s Employer Health Benefits Survey found that employees’ average share of family-plan premiums increased 9% this year, reaching nearly $7,500. Average wage increases, meanwhile, were 3.7%, leaving health coverage costs growing much faster than workers’ pay.

That gap can make even modest changes in a benefits package meaningful. A higher monthly premium reduces take-home pay throughout the year, while a higher deductible or copay can make medical care more expensive at the moment it is needed.

Small employers face difficult tradeoffs

At OSI Packaging in Shreveport, Louisiana, workers’ monthly premiums rose to $300 in 2026, an increase of $100 from the prior year. The company distributes and services packaging material and equipment and has six employees enrolled in its health plan.

Controller Julie Eason said the business was able to leave out-of-pocket costs unchanged despite the premium increase. OSI began offering coverage in May 2025 as part of its effort to fill open positions. The company wants to maintain solid benefits at an affordable price, but another large increase could force tougher choices.

If expenses rise again, Eason said employees would participate in deciding whether the plan should charge higher premiums or require larger copays.

“It’s their healthcare,” she said. “It’s only right to let them decide.”

That same balancing act is playing out at the University Club of Michigan State University. Human resources director Debbie Barosko must choose between a projected premium increase of nearly 13% for 2027 while retaining a $1,000 deductible, or lifting the deductible to $1,500 and holding the premium increase to roughly 7%.

The club’s 30 covered workers already dealt with a 9% premium increase this year and a deductible that doubled after its longtime insurer ceased operations. Barosko is weighing a lower deductible, which can support recruitment, against the financial relief that a higher deductible could provide to both employees and the organization.

“It’s hard to stomach for the employees and the employer when you’re increasing the premiums but diluting the benefits,” she said.

Open enrollment may require closer review

For workers, the coming enrollment season may demand more attention than simply checking whether a preferred doctor remains available. Plan members may find new preferred networks that offer lower copays for certain providers. They also may need to confirm whether prescription drug costs, deductibles or other out-of-pocket requirements have changed.

Jim Winkler, chief strategy officer at the Business Group on Health, said employees should take time to understand how any revisions affect their own care and finances.

“The likelihood that people will see changes makes it critically important for them to invest the time to understand what the changes mean for them,” Winkler said.

Employees comparing options can focus on the full cost of a plan rather than premiums alone. A lower payroll deduction may come with a larger deductible, while a more expensive plan may provide lower charges when medical services are used. Reviewing network rules, prescription coverage and expected care needs can help clarify those tradeoffs before enrollment closes.

Weight-loss drug coverage continues to change

Coverage of GLP-1 medicines for weight loss has become a particularly important issue for large employers. The Business Group on Health found that 60% of employers covered those medications for weight loss this year, down from 72% in 2025. The organization has not heard of companies newly adding such coverage for weight loss.

People seeking these widely used drugs have other purchasing routes, including cash-pay discounts offered by manufacturers. Eli Lilly’s Zepbound and Foundayo, along with Novo’s Wegovy, are among the medicines available through such programs. Prices range from $149 to $699, depending on the drug and dosage, for consumers who pay directly rather than use insurance.

As employers prepare 2027 benefit packages, the central question will remain how much of the growing cost can be absorbed by the business and how much will be passed to workers. For many employees, the answer will be reflected not only in the premium listed on an enrollment form, but also in the deductible, copay and prescription bills they face throughout the year.