Employer health costs expected to see sharpest increase in 20 years: Survey
Marsh said rising hospital and drug prices, plus GLP-1 use, will push costs higher even after employers make plan changes.
- On Wednesday, Marsh, a professional services firm, released its 2026 National Survey of Employer-Sponsored Health Plans, projecting an 8.2% average rise in health benefit costs for 2027.
- Rising prices for hospital care, prescription drugs, and cancer treatments drive cost growth, alongside newer expenses from AI-based medical documentation and increased demand for GLP-1 medications.
- Surveying over 1,800 employers, Marsh found 59% plan cost-cutting changes in 2027, including raising deductibles or limiting coverage for spouses to manage expenses.
- Employees face higher out-of-pocket costs and premiums, prompting companies to pursue direct contracting with hospitals or switch to smaller pharmacy benefit managers for transparency.
- Representing the sharpest increase since 2003, 2027 will mark the fifth consecutive year of elevated health benefit growth, affecting about 160 million people under 65 relying on employer insurance.
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Large Employers Drop Health Benefits as Costs Rise
“Some of the country’s largest employers are pulling back on benefits as they face yet another year of near double-digit health care cost growth,” Axios reports. “It’s a sign that year-after-year spikes in medical costs have real consequences. And corporations are less willing to eat most of the increases.”
Employer healthcare costs expected to skyrocket next year
2027 is expected to see the biggest increase in employer health spending since 2003, according to new projections
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