US employer health costs rise 9.5% in 2027

Across multiple analyses, U.S. employer health care costs are projected to rise sharply in 2027, with estimates centering around double-digit gains. Aon projects costs to increase about 9.5% to just over $19,000 per employee, driven by higher medical utilization, more chronic conditions, and a jump in high-cost claims, including the growing role of GLP-1 therapies and specialty drugs. Other firms report similar pressure, noting that workers already shoulder a sizable share of costs and that 2026 figures showed nearly 9% increases, underscoring a sustained inflation trend in employer-sponsored coverage. Surveys indicate a continued acceleration in prices, with WTW signaling an 11.1% rise as potentially the largest annual increase in over two decades, and industry analyses noting a roughly 10% median increase with prescription drug costs rising even faster at about 11.5%. The affordability squeeze is propelled not only by drugs but also by medical technology and documentation practices that can lift billed charges, complicating efforts to curb spending. Together, the reports highlight a broad, persistent trajectory of rising employer health care costs that will likely impact plans, premiums, and worker out-of-pocket costs in the coming year.