Key facts
- U.S. employer healthcare costs are projected to rise 9.5% in 2027.
- The average cost per employee is expected to surpass $19,000 by 2027.
- Drivers include increased medical utilization, chronic conditions, and high-cost drugs.
- Employers are expected to cover about 82% of health-plan costs in 2026.
- Employee out-of-pocket expenses are projected to reach $2,167 in 2026.
U.S. employer healthcare costs are anticipated to climb by 9.5% in 2027, pushing the average expense per employee above $19,000, according to a report by insurance broker Aon. This projected increase marks the fourth consecutive year of near double-digit growth in healthcare spending for employers.
The rise in medical spending is attributed to several factors, including greater utilization of healthcare services, an increase in chronic conditions, and a growing number of high-cost claims. Specifically, the use of specialty medicines and GLP-1 treatments for conditions like diabetes and obesity is contributing significantly to prescription drug costs.
Furthermore, Aon noted that providers are adopting new technologies, such as artificial intelligence, which can support more detailed clinical documentation and coding, potentially leading to higher billed charges. Employers are expected to cover approximately 82% of health plan costs in 2026.
For 2026, the average cost per employee for employers is forecast to rise by 8.8% to $14,432, with total plan costs increasing by 8.3% to $17,562. Employees are expected to contribute an average of $5,297 in 2026, comprising $3,130 in payroll contributions and $2,167 in out-of-pocket expenses, a 7.9% increase from the previous year.
Aon based its estimates on data from over 1,100 U.S. employers, representing approximately 7.9 million employees and $135 billion in healthcare spending for 2026. The projections assume that employers do not implement benefit changes or care-management programs to curb expenses, though Aon consultants anticipate many employers will introduce such measures to mitigate the anticipated cost increases.