Analysts say employers are preparing for another year of higher health spending. Aon projects healthcare costs for employer-sponsored plans will increase by 9.5% in 2027, according to a report released Thursday. That rise would mark the fourth straight year of increases at or near double-digit levels.
If Aon’s projection holds, the average total plan cost per employee would top $19,000 next year. The firm’s outlook underscores persistent inflation in employer health benefits and the pressure companies face in managing those expenses.
Aon’s report also includes near-term figures for 2026, showing an expected average total plan cost per employee of $17,562 — an 8.3% increase from 2025. Employers are expected to pay $14,432 on average toward those plans in 2026, an 8.8% rise from their 2025 contributions.
While employers continue to shoulder most of the price tag, covering roughly 82% of plan costs on average, employees are also paying more. Aon projects that employees’ combined spending on premiums and out-of-pocket care will average $5,297 in 2026, up 7.9% from 2025. The largest component of that increase was out-of-pocket spending, which Aon said rose 10.2% to $2,167.
As costs climb, employers are deploying a range of strategies to limit financial impact. The Aon report notes companies are considering measures that could shift a greater share of costs onto workers, though for now employers still absorb the bulk of spending. The report did not list specific tactics employers are choosing.
Mike Pasterick, North America Health Solutions Leader for Aon, emphasized the broader implications of sustained cost growth. “At this level, rising health care costs become much more than a budgeting challenge and influence organizational decisions from benefits strategy and employee affordability to broader workforce and financial planning priorities,” he said in the announcement. He added leaders face pressure to keep benefits affordable while investing in attracting, supporting and retaining talent.
A separate survey from consultants at WTW (Willis Towers Watson) published the same week offered an even sharper outlook. The WTW survey found employers expect healthcare costs to increase by 11.1% next year. The Wall Street Journal, which obtained an exclusive look at the WTW findings, reported that such an increase could be the largest spike in health insurance costs in nearly two decades. Jeff Levin-Scherz, population health leader at WTW, told the Wall Street Journal that “Employers are telling us that this is utterly unsustainable.”
The Aon and WTW figures together paint a picture of mounting cost pressures across employer-sponsored coverage. Both surveys were released in the same week, but the Aon report’s specific methodology details and the WTW survey’s sampling and methods were not included in the source material.
Sustained increases in employer health spending affect multiple areas of operations and worker finances. Employers face decisions about whether to absorb rising costs, spread them across the workforce, or change benefit designs. For employees, higher premiums and out-of-pocket costs can reduce take-home pay and affect access to care.
Aon’s findings that employers still pay roughly 82% of plan costs signals that most of the financial burden remains with employers. Yet the notable increases in employee out-of-pocket spending — a projected 10.2% rise to $2,167 — indicate growing direct costs for workers as well.
The source article does not specify which exact cost-management steps employers will take next or offer state- or industry-specific breakdowns of the projected increases. It also does not provide detailed methodological notes for the Aon projection or the WTW survey beyond their headline figures. Employers, employees and policymakers will likely watch actual 2027 premium renewals and plan designs to see how projections translate into real-world costs and coverage changes.
For now, Aon’s 9.5% projection and WTW’s 11.1% expectation signal continued pressure on employer-sponsored health benefits heading into 2027. Company leaders will be balancing budget constraints, employee affordability concerns and talent-management priorities as they respond to these projected increases.
The figures and quotes in this report come from the Aon projection and commentary in the Aon announcement, and from a WTW survey and Wall Street Journal reporting cited in the source article. Specific methodological details for the surveys were not reported in the source.
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