Experts predict that many consumers will face higher health insurance premiums and out-of-pocket costs next year, with employer-sponsored health plans seeing an average cost increase of 8.2% per worker, the largest rise since 2003. Consulting firms like WTW and Aon project even steeper increases, with employer healthcare costs expected to rise by 11.1% and 9.5%, respectively, in 2027.
As a result, employers may pass these costs onto workers, who have already seen their total healthcare expenses jump by 7.9% in 2026. Nearly 60% of employers plan to implement cost-cutting measures, such as higher deductibles, which could lead to larger bills for employees when they seek care.
In the Affordable Care Act marketplace, a median premium increase of 15% is anticipated for 2027, following a previous 20% rise, affecting approximately 19.2 million Americans. The expiration of enhanced premium tax credits has left some enrollees, particularly those earning above 400% of the federal poverty line, facing full premium costs.
The rising costs are attributed to several factors, including increased utilization of GLP-1 medications, general inflation, labor shortages in healthcare, and consolidation in health services. Overall, these developments signal a potential end to a period of moderated health spending growth, which could have significant implications for consumers and the healthcare market