If you get health insurance through your employer, buckle up. Costs are expected to spike — yet again — next year.
Workplace health coverage expenses could rise 11.1% in 2027, according to a preview of WTW’s forthcoming Best Practices in Healthcare Survey shared with Money. That’s the expected increase in prices if businesses make no cost-saving changes to their health benefits. If they do make changes, premiums may still jump 9.7%.
Either rate would be the highest yearly increase on record.
WTW’s annual survey includes responses from 471 U.S. employers with at least 100 workers. The topline finding? In order to deal with the rising cost of healthcare, companies across the U.S. are planning to push more of the cost onto workers.
By 2028, more than 7 in 10 employers say they are planning to make changes that would increase their workforce’s out-of-pocket healthcare expenses, up from 30% in 2026. And 85% of companies said they are considering increasing employees’ premiums in the next two years.
WTW’s findings mirror several similar reports. Earlier this month, consulting firm Aon reported that workplace health coverage expenses could rise 9.5% next year, and the Business Group on Health projected 9.2% price growth.
All three surveys points to common reasons health insurance keeps getting more expensive. The number of high-cost claimants have been growing in recent years, which drives costs up across the board. That, in part, is due to higher prevalence of cancer and other chronic conditions among working-age Americans.
The skyrocketing price of prescription drugs is another contributing factor. Then there’s regular medical care inflation, which is tied more directly to the cost of procedures, medical equipment at and the pay of providers.
“At this level, rising healthcare costs become much more than a budgeting challenge,” Mike Pasterick, the head of health benefits in North America at Aon, said in a news release.
Health insurance costs aren’t slowing down
It was supposed to be a blip.
Before the pandemic, annual health insurance costs rose fairly steadily, around 4%. Then price growth dropped to 2% in 2020, according to WTW. So when it rebounded above 5% in 2023, many experts viewed the spike as a temporary reset.
Instead of a blip, employers and workers have been dealing with consecutive years of record-setting health plan inflation.
According to the nonprofit health research organization KFF, average annual health care premiums for workplace plans reached $9,325 for singles and $26,993 for families in 2025. Employers pay the lion’s share of those costs, typically covering 84% for single plans and 74% for family plans.
The remainder is usually deducted automatically each month from the worker’s paycheck. Per month, that translates into about $120 and $571 for singles and families, respectively.
WTW’s survey findings suggest these norms are about to change, as employers are widely considering shifting more of the premium onto their employees.
Another way companies are considering lowering the cost of their plans is by implementing higher deductibles, or the amount of money you must pay out-of-pocket before certain coverage kicks in. The vast majority of workplace plans have deductibles, and they are usually about $1,900 for singles and $5,100 for families, per KFF.
Given the projected cost increases coming down the pike, employers are likely to make several changes at once, which may affect coverage, monthly premiums and deductibles.
With open enrollment season at most companies just around the corner, be sure to check in with HR to understand what’s changing at your employer and how it will affect your wallet — ideally before the trip to the doctor.
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