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Getting the latest healthcare news for you
Getting the latest healthcare news for you
Rising healthcare costs are forcing big employers to make tough calls. Companies like Disney, Starbucks, and Deloitte are cutting or scaling back employee health benefits — from spousal coverage to GLP-1 drugs and parental leave. With costs projected to rise another 8.2% in 2027, the highest jump since 2003, employers say they're running out of room to absorb the increases.
Rising healthcare costs are pushing some of America's biggest employers to cut back on benefits. Disney is dropping health coverage for working spouses who have access to their own plans, Starbucks is ending GLP-1 coverage for weight loss, and Deloitte is rolling back parental leave and IVF funding. The message from corporate America is clear — there's no bottomless pot of money to absorb endless cost increases.
The trend isn't expected to reverse anytime soon. Multiple major surveys project high-single-digit cost growth heading into 2027, and employers are responding with a mix of benefit cuts, plan redesigns, and cost-shifting to employees. Some are also experimenting with direct contracting, narrower hospital networks, and greater investment in primary care to tackle root causes.
By the Numbers:
Why it matters: For patients and employees, these shifts could mean higher out-of-pocket costs, fewer covered services, and more pressure to navigate insurance independently — a real-world consequence of a healthcare cost spiral that shows no signs of slowing.
