Employer Health Insurance Costs to Jump 8.2% in 2027, Biggest Rise Since 2003
Updated
Updated · The Washington Post · Sep 2
Employer Health Insurance Costs to Jump 8.2% in 2027, Biggest Rise Since 2003
3 articles · Updated · The Washington Post · Sep 2
Summary
An employer survey of more than 1,800 companies projects health insurance costs will rise 8.2% in 2027, the steepest annual increase in over two decades.
Marsh said about 3 percentage points of that increase come from three drivers: GLP-1 weight-loss drugs, providers using AI to identify more billable claims, and a federal billing-dispute system that has boosted payouts.
Employers said costs would climb about 11% next year if they made no changes, so many are trying to limit the increase by altering plan design or coverage.
Workers are expected to absorb part of the increase through higher premiums and reduced benefits, adding to several years of rising costs in employer and marketplace health plans.
Congress has proposed changes to the 2022 dispute-resolution law, but hospital consolidation and pricier cancer treatments suggest broader cost pressure will persist.