U.S. employer healthcare costs are on track to climb by 9.5% in 2027. According to new data from Aon, this projected increase will push the average expense for employers past $19,000 per employee. This trend marks the fourth consecutive year of near double-digit growth in these costs.
The drivers behind this spending are clear. Increased utilization of healthcare services by employees, the higher prevalence of chronic conditions, and a surge in high-cost claims all contribute to the pressure on company budgets. Specialty medicines, including GLP-1 treatments for obesity and diabetes, are also adding to the total bill for prescription drugs.
Technological adoption is playing a role as well. Providers are increasingly using tools that support clinical documentation and coding, which can lead to higher billed charges. These figures are based on Aon’s analysis of data from more than 1,100 U.S. employers, representing 7.9 million employees and $135 billion in annual spending.
Employers currently cover about 82% of health plan costs. For 2026, the average cost per employee is already expected to rise 8.8% to $14,432. Meanwhile, employees face their own increase, with expected average spending on contributions and out-of-pocket expenses reaching $5,297 this year. These projections assume that employers maintain current benefit structures without major changes. Many companies will likely introduce cost-saving programs to mitigate these rising expenses in the coming year.