US employer healthcare costs set to rise 9.5% in 2027, Aon says

U.S. employer healthcare costs are expected to rise 9.5% in 2027, pushing the average cost above $19,000 per employee, driven by increased medical use and spending on high-priced drugs, insurance broker Aon said on Thursday.

Medical spending has climbed as patients use more healthcare services, chronic conditions become more prevalent and the number of high-cost claims increases, Aon said. Healthcare costs for employers are set to rise by near double digits for a fourth straight year in 2027.

Greater use of specialty medicines and GLP-1 treatments for diabetes, obesity and other conditions is adding to prescription-drug costs.

"Additional cost pressure is emerging as providers adopt technologies, including AI, that support more detailed clinical documentation and coding, contributing to higher billed charges in some instances," said Aon.

Employers are expected to cover about 82% of health-plan costs in 2026.

Their average cost is expected to rise 8.8% this year to $14,432 per employee, while total plan costs increase 8.3% to $17,562.

Employees are expected to spend an average of $5,297 in 2026, comprising $3,130 in payroll contributions and $2,167 in out-of-pocket expenses, a combined increase of 7.9% from last year.

Aon based its estimates on data from more than 1,100 U.S. employers covering 7.9 million employees and $135 billion in 2026 healthcare spending.

The projection assumes employers do not make benefit changes or introduce care-management programs to curb expenses.

"Aon consultants expect many employers to implement cost-saving changes or programs to help mitigate this increase," it said.