Healthcare Costs Set to Jump 9.5% in 2027

U.S. employers are expected to see a 9.5% increase in health care costs in 2027, according to a projection released by benefits consulting firm Aon. The firm stated that this figure represents the baseline cost before any cost-management strategies are applied. If realized, the rise would push the average expense per employee above $19,000.

This financial pressure typically shifts toward employees in the form of higher premiums, increased deductibles, or altered copays. For workers in Georgia and across the country, the upcoming benefits enrollment period offers a window to assess the total financial impact of each plan option rather than focusing solely on the payroll deduction.

Aon attributes the rising costs to several factors. The firm noted a continued increase in the utilization of health care services and a growing prevalence of chronic conditions. Additionally, the number of high-cost claims is expanding. Prescription drug spending also plays a major role, driven by the increased use of specialty medications and GLP-1 therapies.

The share of costs borne by employees is already substantial. Aon reported that workers are projected to pay an average of $5,297 for health care coverage in 2026. This total includes $3,130 in payroll contributions and $2,167 in out-of-pocket expenses. The out-of-pocket portion rose by 10.2% from the previous year. Aon cited higher service usage and a shift toward leaner plan options as the primary drivers of this increase. Employers continue to cover approximately 82% of total plan costs on average.

Lower monthly premiums often come with trade-offs that affect out-of-pocket spending. A plan with a smaller monthly deduction may feature a higher deductible, increased copays, a restricted provider network, or costlier prescription benefits. Employees are advised to review specific plan components before making a selection.

Key metrics to verify include the deductible amount, the out-of-pocket maximum, and specific costs for office visits and hospital care. Workers should also confirm that their current doctors and specialists remain in-network. For those taking prescription medications, it is essential to check for changes in drug tiers, deductibles, or prior-authorization requirements.

Coverage for GLP-1 medications used for weight management is contracting. The nonprofit Business Group on Health reported that employer coverage for these drugs fell to 60% in 2026, down from 72% in 2025. The data comes from a survey of 127 employers representing 8.7 million covered individuals. The group found that 14% of these employers have dropped or intend to drop weight-management coverage by 2027.

Business Group on Health estimates the median health care cost increase for 2027 at 9.2%, dropping to 8% if employers adjust plan designs. Employees should contact their human resources departments to confirm 2027 coverage details, particularly if they rely on high-cost medications or anticipate specific medical procedures. Comparing all financial elements before the enrollment deadline is recommended.