Health Coverage Shock Could Hit Millions Of Workers: Here's When, Why

Another financial squeeze may be coming for millions of Americans who receive health coverage through work.

Employer-sponsored health benefit costs are projected to rise an average of 8.2 percent per employee in 2027, according to preliminary findings from Marsh’s 2026 National Survey of Employer-Sponsored Health Plans.

That would be the largest increase since 2003 and the fifth straight year of elevated growth.

The projection already accounts for steps that companies plan to take to control spending. Without those measures, employers expect the cost of their existing plans to climb an average of 11 percent.

Marsh based its preliminary findings on responses from more than 1,800 US employers.

The firm identified rising use of GLP-1 weight-loss medications as a major factor. Those drugs alone account for an estimated one percentage point of the projected increase.

New diagnostic services and advanced treatments are improving patient outcomes but often cost more than the care they replace. High-priced therapies for cancer and rare diseases are also producing more exceptionally costly insurance claims.

Other pressures include hospital and health system consolidation, higher charges for employer plans, and increased payments to out-of-network providers.

Marsh also pointed to growing use of artificial intelligence software that helps medical providers submit more claims and bill for higher levels of service.

Workers could absorb part of the increase.

The survey found that 59 percent of employers plan cost-cutting benefit changes in 2027. Those changes could include higher deductibles and other increases in out-of-pocket expenses.

A separate Marsh survey found that about two-thirds of employers with at least 500 workers expect to increase employees’ share of premium costs. Some workers could therefore see paycheck deductions rise by more than the projected 8.2 percent average.

A separate forecast from insurance broker Aon projected a 9.5 percent increase in employer healthcare costs, according to NewsNation. That estimate would push average costs above $19,000 per employee.

Employees should compare available plans carefully during open enrollment, including premiums, deductibles, provider networks, prescription coverage, and maximum out-of-pocket costs. The best option will depend on each household’s medical and financial needs.