US Employer Health Premiums Forecast to Jump 9.5% for 2027, Fourth Straight Year of Sharp Increases

Employers' healthcare costs are forecast to rise 9.5% in 2027, with workers expected to absorb higher premiums and out-of-pocket costs, according to insurance brokerage Aon. The projected increase marks the fourth consecutive year of steep hikes and adds pressure to already-tight household budgets. Workers' share of premiums rose 9% on average this year to nearly $7,500 for family coverage, while wages grew just 3.7%, according to KFF's Employer Health Benefits Survey published Thursday. Rising use of health services, costly cancer treatments and demand for expensive obesity medications are driving the increases, Aon said. Employers are also pulling back on coverage of GLP-1 drugs for weight loss. The share of large employers covering the medications fell to 60% this year from 72% in 2025, according to the Business Group on Health. Some companies are weighing direct purchases from manufacturers, including Eli Lilly's Zepbound and Novo's Wegovy, which are sold at cash prices of $149 to $699.