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Getting the latest healthcare news for you
Getting the latest healthcare news for you
U.S. employers are bracing for a median 9.2% jump in healthcare costs in 2027, per the Business Group on Health — and that may still be an underestimate. Actual costs have exceeded projections for three straight years, with each gap wider than the last. Facing a potential cumulative 76% cost surge over the decade, employers are trimming benefits, rethinking vendor relationships, and pulling back on GLP-1 coverage.
U.S. employers are staring down yet another year of punishing healthcare cost growth. The Business Group on Health (BGH), surveying 127 employers covering 8.7 million Americans, found that companies expect a median 9.2% increase in health costs in 2027 — even after plan benefit changes bring that figure down to around 8%, it still represents an unusually sharp spike. A separate Aon analysis pegs the increase at 9.5%, while WTW forecasts an 11.1% rise — potentially the highest in nearly two decades.
What makes this especially alarming: employers have underestimated actual healthcare spend for three consecutive years, with each miss larger than the last. BGH CEO Ellen Kelsay warned that current forecasts for 2026 and 2027 "may actually be too optimistic." Cancer remains the top cost driver (cited by 70% of employers), followed by musculoskeletal and cardiovascular conditions, with pharmacy costs projected to rise 12% in both 2026 and 2027. In response, employers are cutting benefits, reassessing vendor relationships, and scaling back GLP-1 coverage for obesity.
By the Numbers:
Why it matters: Employers are the backbone of U.S. health insurance, covering most working Americans. As costs become increasingly unpredictable and unsustainable, companies are cutting benefits, shifting costs to workers, and questioning their long-term role in the healthcare system — with real consequences for patient access and workforce stability.
