Loading Curie Briefs...
Getting the latest healthcare news for you
Getting the latest healthcare news for you
Brace for another year of sticker shock. Employer health care costs are projected to rise 9.5% in 2027, topping $19,000 per employee, according to benefits consultant Aon. Rising demand for health services, more chronic disease, and growing GLP-1 drug use are key drivers — and workers will feel it too, paying an average of $5,297 out of pocket this year alone.
Brace for another year of sticker shock
Employer health care costs are projected to jump 9.5% in 2027, surpassing $19,000 per employee, according to new projections from benefits consultant Aon. This marks yet another year in one of the most sustained periods of health care inflation in decades — cost increases have more than doubled since 2022, climbing from 3.7% to 8.8% in 2026.
The culprits? Rising demand for health services, growing rates of chronic disease, and increased use of pricey GLP-1 medications. Even AI is playing a role — its use in billing and coding is leading to more detailed documentation, which in some cases is driving up charges.
By the numbers:
Why it matters: Employers are getting more proactive — exploring benefit restructuring and network changes — but cost-cutting moves like dropping high-cost providers risk worker backlash. With no clear end in sight, affordability concerns for both employers and employees are only set to grow.
