U.S. employers are likely to face substantially higher health benefit costs in 2027, with Marsh projecting an average 8.2% increase in total costs per employee, including employer and employee premium contributions. That would be the steepest increase since 2003, even after employers take cost-saving measures such as raising deductibles. Without those steps, employers estimated their health plan costs would rise 11% on average. Higher treatment costs for serious illnesses, reduced provider competition and soaring prescription drug prices, including GLP-1 drugs used for diabetes and weight loss, are contributing to the increase. Marsh said 59% of employers plan to make cost-cutting changes to health benefits next year. Employers typically cover about 80% of health plan costs, leaving workers responsible for the rest, and about two-thirds of large employers expect to increase employees’ share of premium costs in 2027. Marsh expects most employees to face higher paycheck deductions and out-of-pocket costs. Separately, Aon forecasts that workers will spend an average of $3,130 on premiums and $2,167 on out-of-pocket costs this year, bringing their total annual health insurance bill to nearly $5,300, up 7.9% from $4,909 last year. About 165 million people under age 65 received employer-sponsored health insurance in 2025, according to KFF.