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U.S. employers are heading toward another year of steep health benefit expenses, with average costs projected to climb 9.5% in 2027 and exceed $19,000 per employee, according to a new analysis from Aon. The forecast would mark four consecutive years of increases approaching double digits.
Medical spending continues to be pushed higher by greater use of health services, the growing prevalence of chronic conditions and rising prescription drug expenses. Aon also points to increasing use of specialty medicines and GLP-1 treatments, which are expanding into additional areas of care.
The financial burden is already being shared heavily by employers. In 2026, the average total health plan cost reached $17,562, up 8.3% from 2025. Employers covered 82.2% of that amount, while employees contributed the remainder through payroll deductions and other costs.
For workers, average health care spending is expected to reach $5,297 in 2026, including $3,130 in payroll contributions and $2,167 in out-of-pocket expenses. The latter increased 10.2% from the previous year.
Cost growth is affecting every major industry. Employer expenses increased between 6.5% and 9.8% across sectors from 2025 to 2026, with finance and insurance recording the highest employer increase at 9.8%.
“The organizations best positioned for the future will be those that can proactively identify emerging risks and take targeted action before costs escalate,” said Debbie Ashford, North America Chief Actuary, Health Solutions for Aon. She said employers will increasingly need stronger data and deeper insight into spending patterns to make informed health benefit decisions.
The image is an illustration created with AI for general context.
Source: AON
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