U.S. employer healthcare costs projected to rise 9.5% by 2027

U.S. employer healthcare costs are projected to rise by 9.5% in 2027, according to research from professional services firm Aon. This increase would bring the average cost to over $19,000 per individual employee.

Several factors are contributing to these rising expenses. Aon’s North America Health Solutions Lead, Mike Pasterick, identified the rise of specialty medications and GLP-1 therapies, such as Ozempic, as key drivers. Other contributing factors include higher utilization rates, the prevalence of chronic diseases, increased spending in physician and outpatient care, and provider consolidation.

Analysts also point to a lack of price transparency within the healthcare system. Sean Parnell, a senior fellow at Save Our States, noted that because most payments are made by third parties like insurance or government programs, there is often less incentive to monitor costs. While some lawmakers are considering legislation to mandate greater transparency from hospitals and insurers, a recent report found that 43% of reviewed hospitals have actually posted fewer prices compared to 2024.