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Employer health costs expected to see sharpest increase in 20 years: Survey
Marsh said 59% of employers plan cost-cutting changes, as rising premiums and deductibles could push workers’ health costs higher.
- On Wednesday, Marsh, a professional services firm, released its 2026 National Survey of Employer-Sponsored Health Plans, projecting an 8.2% average rise in health benefit costs for 2027.
- Rising prices for hospital care, prescription drugs, and cancer treatments drive cost growth, alongside newer expenses from AI-based medical documentation and increased demand for GLP-1 medications.
- Surveying over 1,800 employers, Marsh found 59% plan cost-cutting changes in 2027, including raising deductibles or limiting coverage for spouses to manage expenses.
- Employees face higher out-of-pocket costs and premiums, prompting companies to pursue direct contracting with hospitals or switch to smaller pharmacy benefit managers for transparency.
- Representing the sharpest increase since 2003, 2027 will mark the fifth consecutive year of elevated health benefit growth, affecting about 160 million people under 65 relying on employer insurance.
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Employers prepare for a double-digit surge in healthcare costs
U.S. employers are preparing for the sharpest increase in healthcare costs in more than two decades, The New York Times reports. According to a Marsh survey of 1,800 employers, healthcare costs per employee are expected to rise an average of 11% next year, while costs are projected to increase about 8% after employers make changes […]
Employer Health Costs, Workers' Premiums Rising in 2027
According to a survey released this week by Marsh, U.S. employers are bracing for another steep increase in healthcare costs, with spending per worker projected to rise 11% next year before companies change their benefit plans.
·Boca Raton, United States
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Coverage Details
Total News Sources13
Leaning Left6Leaning Right2Center4Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 33%
R 17%
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