U.S. employer healthcare costs projected to rise 9.5% in 2027, exceeding $19,000 per employee

A projection by benefits-consulting firm Aon indicates that U.S. employer healthcare costs are set to rise by 9.5% in 2027, exceeding $19,000 per employee. This potential two-decade-high increase is driven by rising medical usage, specialty drugs like GLP-1 treatments, and AI-driven billing technologies. While employers covered 82% of costs in 2026, workers also faced a 7.9% increase in their healthcare spending, averaging $5,297. Employers are expected to implement cost-saving programs to mitigate these rising expenses.

2027 employer healthcare cost projections

• ▪Aon based its healthcare cost projections on data from more than 1,100 U.S. employers covering 7.9 million employees and $135 billion in 2026 healthcare spending
• ▪A projection by benefits-consulting firm Aon estimates that U.S. employer healthcare costs will rise by 9.5% in 2027, pushing the average cost above $19,000 per employee
• ▪The projected 9.5% increase in U.S. employer healthcare costs for 2027 represents the fourth consecutive year of near-double-digit cost increases
• ▪According to benefits-consulting firm Aon, U.S. employers in 2027 may face the largest health-insurance cost increase in at least two decades

Drivers of healthcare cost increases

• ▪The adoption of technologies like artificial intelligence by healthcare providers supports more detailed clinical documentation and coding, contributing to higher billed charges
• ▪Prescription-drug costs are rising due to the greater use of specialty medicines and GLP-1 treatments for diabetes, obesity, and other conditions
• ▪The projected rise in U.S. healthcare costs is driven by increased medical services usage, a higher prevalence of chronic conditions, and a growing number of high-cost claims

Employer cost coverage

• ▪In 2026, the average healthcare cost for U.S. employers is expected to rise 8.8% to $14,432 per employee, while total plan costs increase 8.3% to $17,562
• ▪U.S. employers are expected to cover approximately 82% of health-plan costs in 2026

Employee healthcare spending

• ▪The average $5,297 spent by U.S. employees on healthcare in 2026 comprises $3,130 in payroll contributions and $2,167 in out-of-pocket expenses
• ▪U.S. employees with workplace coverage spent an average of $5,297 on healthcare in 2026, representing a 7.9% increase of $388 compared to 2025

Employer cost mitigation strategies

• ▪Aon's 2027 healthcare cost projection assumes that employers do not make benefit changes or introduce care-management programs to curb expenses
• ▪Aon consultants expect many U.S. employers to implement cost-saving changes or programs to help mitigate the projected 2027 healthcare cost increases

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