Business Wire·Sep 2, 2026, 9:00 AM ET

Employers Expect Health Benefit Costs to Jump 8.2% in 2027, and the Impact Will Likely Be Felt by Workers, According to Marsh

MRSH

Marsh released preliminary 2026 survey results indicating US employer health benefit costs will rise 8.2% on average in 2027, the highest increase since 2003.
Without intervention, employers project a 11% cost increase, whereas planned cost-reduction measures are expected to limit growth to 8.2%.
2027 marks the fifth consecutive year of elevated health cost growth, surpassing the previous year's 6.7% average increase.
Key drivers of rising costs include advanced diagnostics, health system consolidation, lower public funding, \& the emergence of GLP-1 weight management medications.
GLP-1 medication utilization alone is estimated to account for one percentage point of the total 2027 cost growth.
Additional cost pressures stem from AI-enabled billing software increasing claim volume & severity, plus higher payments to out-of-network providers under the No Surprises Act.
59% of employers plan to implement cost-cutting changes in 2027, such as increasing deductibles \& out-of-pocket expenses for members.
Approximately two-thirds of large employers expect to increase employee premium contributions, likely exceeding the overall 8.2% average cost increase.
Some employers are adopting variable copay plans to control costs without shifting expenses to employees, with 12% of large employers planning to offer them in 2027.
Guiding members to high-quality care is now a top priority for 58% of large employers, rising from fifth place in the previous year's survey.
Managing high-cost claims remains the highest priority as new, expensive therapies for cancer \& rare diseases increase budget volatility.
Over one-third of large employers plan to offer non-traditional medical plans in 2027 designed to lower both paycheck deductions \& out-of-pocket costs.