Employer and worker health plan costs expected to jump in 2027

Updated on: September 4, 2026 / 11:05 AM EDT / CBS News

Employers across the U.S. are likely to face sharply higher health insurance costs next year, which could drive up how much workers pay for medical coverage, according to a recent survey.

Health benefits consulting firm Marsh projects that the total health benefit cost per employee, which measures both employer and employee premium contributions, will rise by an average of 8.2% in 2027, the steepest increase since 2003.

That forecast factors in cost-saving steps employers plan to take, such as raising deductibles, which typically lower monthly premiums for employees but increase their out-of-pocket costs. Without those measures, employers said their health plan costs would increase by 11% on average, according to Marsh.

The projections are based on a national survey Marsh fielded over the summer on employer-sponsored health plans.

The cost of employer-sponsored health plans has surged in recent decades, according to nonprofit health policy researcher KFF, driven largely by the higher treatment costs for serious illnesses such as cancer. The number of health providers has also shrunk, giving them greater leverage when negotiating plan costs with insurers, Marsh notes.

Soaring prescription drug prices are also playing a role…

Original source: https://www.cbsnews.com/entertainment/