U.S. employer healthcare costs are projected to climb 9.5% in 2027, according to a report by Aon, marking the fourth consecutive year of near double-digit growth. The average cost per employee is expected to surpass $19,000, up from this year's projected $14,432.
The 2027 increase follows an 8.8% rise in 2026, when employers were expected to cover 82% of health-plan costs. Total plan costs in 2026 were forecast to reach $17,562 per employee, while employee contributions were projected at $5,297, including $3,130 in payroll deductions and $2,167 in out-of-pocket expenses. The data, based on Aon's analysis of over 1,100 U.S. employers covering 7.9 million employees and $135 billion in 2026 healthcare spending, reflects sustained upward pressure on employer-sponsored healthcare expenses.
Aon attributed the projected rise to increased medical utilization, higher spending on high-priced drugs, and a growing prevalence of chronic conditions. The report highlighted rising claims costs, particularly for specialty medicines and GLP-1 treatments targeting diabetes and obesity. Additionally, the adoption of advanced clinical documentation tools, including AI, by healthcare providers was cited as a factor contributing to higher billed charges in some cases.
The 2027 forecast assumes no benefit changes or cost-management interventions by employers. Aon consultants noted that many companies are likely to implement programs to mitigate the increase, though specific strategies were not detailed in the report.
