Major companies to cut back on 2027 health benefits in blow to workers

Health benefits are a top factor in whether Americans take or stay in a job, yet in a span of a few weeks, a handful of large employers reportedly are planning cutbacks or changes that can make that choice even tougher in 2027.

Walt Disney, Bloomberg, Starbucks, Deloitte, and the City of Dallas are among those taking actions next year to rein in health care spending, from restricting spousal coverage to eliminating plan options or cutting drug benefits to deal with soaring costs. Health plans are projecting the highest medical cost trend in nearly two decades, with commercial health care costs expected to rise 9% in 2027, according to consulting firm PwC. Insurer Aon predicted even higher costs, with U.S. employer health care costs increasing 9.5% next year, pushing average costs above $19,000 per employee.

These benefit cuts could be devastating for workers if they have to shoulder more of their own health costs, analysts said. Americans already say they have limited budgets for health insurance outside an employer-sponsored plan, according to finance researcher ValuePenguin. Overall, 42% of the 2,001 adults surveyed in July said they could comfortably afford less than $100 a month, while 23% said they could afford…

Original source: https://www.usatoday.com/money/