By The Epoch Times | Created at 2026-08-21 21:06:34 | Updated at 2026-09-02 10:38:53
1 week ago
A woman visits a registered nurse practitioner for a checkup at a Planned Parenthood health center in West Palm Beach, Fla., on June 23, 2017. Joe Raedle/Getty Images
U.S. employer healthcare costs are projected to rise 9.5 percent in 2027, pushing the average cost above $19,000 per employee, insurance consulting firm Aon said in a statement on Aug. 20.
The projection marks the fourth straight year of near double-digit increases for U.S. employers.
Employees also face growing budget pressure. In 2026, the average employee is expected to spend nearly $5,300 for healthcare coverage—including payroll contributions ($3,130) and out-of-pocket expenses ($2,167)—up 7.9 percent from 2025, according to Aon’s estimates.
Aon built its projection upon data from more than 1,100 U.S. employers, covering 7.9 million employees and $135 billion in 2026 healthcare spending.
Aon attributed the medical spending growth to rising medical utilization, chronic disease prevalence, and increased prescription drug spending.
The growing use of specialty medicines and GLP-1 therapies for heart disease, sleep apnea, and chronic kidney disease is expanding prescription drug costs, according to Aon.
“Rising health care costs become much more than a budgeting challenge and influence organizational decisions from benefits strategy and employee affordability to broader workforce and financial planning priorities,” said Mike Pasterick, North America health solutions leader for Aon.
“Leaders are undergoing pressure to maintain affordable benefits while continuing to invest in attracting, supporting and retaining talent,” he said.
Additionally, providers are adopting artificial intelligence (AI) and other technologies that support detailed clinical documentation and coding, which also drives higher costs, according to Aon.
A similar June analysis from PwC projected the commercial health plan cost to increase 9 percent in 2027, reaching the highest medical cost trend in 17 years.
Around 70 percent of health plans ranked provider AI tools as a top-three cost driver, according to PwC’s report.
Other cost drivers include growing provider reimbursement thanks to inflation and provider consolidation, higher use of specialty drugs and behavioral health services, and escalating out-of-network payment disputes under the No Surprises Act, according to PwC.
