Getting health insurance from your job will be extra pricey for 2027

Job-Based Health Coverage Could Cost More in 2027

Earthguardiansonline.com – Employees enrolling in workplace health plans for 2027 may face another painful increase in premiums and out-of-pocket expenses, extending a multiyear run of rising costs that is straining household budgets.

Employers are expected to see healthcare expenses climb 9.5% next year, Aon projects. Companies may adjust plan designs and other benefits to soften that increase, but workers are still likely to shoulder part of the burden through higher paycheck deductions, deductibles, copays or narrower coverage options.

The pressure comes after several years in which medical inflation was comparatively restrained. Employers are now confronting more sustained increases tied to greater use of health services, costly cancer and specialty treatments, and continued demand for high-priced obesity medications.

“The affordability crisis is real. It’s going to be much more noticeable with annual enrollment.”

Todor Penev, Aon’s head of US health analytics, said employers have already used many of their available cost-control measures. For some businesses, the next decisions may be more difficult: shifting a greater share of premiums to employees, raising what workers pay when receiving care, or changing which services are covered.

Premiums Are Rising Faster Than Pay

Workers have already seen the mismatch between health coverage costs and wage growth. KFF’s Employer Health Benefits Survey found that employees’ average contribution for family coverage increased 9% this year, reaching nearly $7,500. Average pay increases, meanwhile, were 3.7%.

That gap can have consequences beyond an employee’s monthly budget. When premiums take up more income, families may have less flexibility for housing, food, transportation, savings and other essentials. Higher deductibles can create a separate problem because people may need to pay more before their insurance begins covering a significant share of care.

For workers comparing plans during open enrollment, the premium is only one part of the calculation. A lower monthly premium may come with a larger deductible, higher copays, different prescription coverage or more limited provider access. The best choice can depend on whether a household expects regular medical visits, takes expensive medications or anticipates a major procedure.

Small Employers Face Difficult Tradeoffs

At OSI Packaging in Shreveport, Louisiana, premiums rose to $300 per month for workers in 2026, an increase of $100 from the prior year. The company distributes and services packaging materials and equipment and has six employees enrolled in its health plan.

OSI began offering health coverage in May 2025 as part of an effort to help fill open positions. Controller Julie Eason said the business was able to keep employees’ out-of-pocket costs unchanged despite the latest premium increase. But another significant jump could force a choice between higher premiums and higher copays.

“It’s their healthcare. It’s only right to let them decide.”

Eason said employees would have a voice if the company has to choose how to absorb future increases. The situation illustrates the challenge for smaller organizations, where a limited number of people enrolled in a plan can make costs especially difficult to manage.

At the University Club of Michigan State University, human resources director Debbie Barosko is considering two options for the roughly 30 workers in the club’s health plan. Employees could face a premium increase of nearly 13% while retaining a $1,000 deductible. Alternatively, the deductible could rise to $1,500, reducing the premium increase to roughly 7%.

The club’s employees already dealt with a 9% premium increase and a deductible that doubled for the current year after its longtime insurer ceased operations. Barosko must weigh the appeal of a lower deductible for recruiting and retention against the need to limit costs for both the club and its employees.

“It’s hard to stomach for the employees and the employer when you’re increasing the premiums but diluting the benefits.”

What Employees Should Review During Enrollment

Plan changes may make open enrollment more consequential for workers in 2027. Jim Winkler, chief strategy officer at the Business Group on Health, said employees should spend time examining what any changes mean for their own medical and financial circumstances.

Some plans may offer lower copays when members use physicians in newly designated preferred networks. Employees should check whether their doctors and facilities remain in-network, especially if a plan’s network has changed. They should also review prescription benefits carefully, including deductibles, formularies and the amount they would pay for each medication.

Workers may also want to compare the maximum out-of-pocket limit, since that figure can become important during a serious illness or unexpected medical event. Understanding whether urgent care, mental health services, specialist appointments and hospital care are covered differently can help prevent surprise bills later.

Weight-Loss Drugs Remain a Major Cost Issue

Coverage for GLP-1 medications used for weight loss is becoming less common among employers represented by the Business Group on Health, whose membership tends toward larger companies. The share covering those drugs fell to 60% this year from 72% in 2025, and the organization has not heard of companies newly adding weight-loss coverage for the medications.

Demand for such treatments has remained high. People seeking drugs including Eli Lilly’s Zepbound and Foundayo, along with Novo’s Wegovy, have more purchasing options than before. Manufacturers offer discounted cash-pay arrangements for people who do not use insurance, with prices ranging from $149 to $699 depending on the medication and dose.

For employees, the larger lesson is that workplace coverage is changing in ways that may not be obvious until enrollment materials arrive. Reviewing plan documents early, confirming provider access and estimating likely healthcare use can make it easier to recognize the real cost of each option before a coverage decision is locked in.