US employer healthcare costs rise 9.5%
Analysis based on 9 articles · First reported Aug 20, 2026 · Last updated Aug 20, 2026
The projected rise in employer healthcare costs signals continued inflationary pressure on U.S. businesses, potentially squeezing corporate margins and affecting hiring and compensation decisions. Insurers and healthcare providers may see increased revenue, but employers and employees face higher expenses, which could dampen consumer spending and overall economic growth.
Aon (company), a major insurance broker, projected that U.S. employer healthcare costs will rise 9.5% in 2027, pushing the average cost above $19,000 per employee. This marks the fourth consecutive year of near-double-digit increases, driven by increased medical use, higher prevalence of chronic conditions, and spending on high-priced drugs, including GLP-1 treatments. Aon also noted that providers adopting AI for clinical documentation may contribute to higher billed charges. The estimates are based on data from over 1,100 U.S. employers covering 7.9 million employees and $135 billion in 2026 healthcare spending. Employers are expected to cover about 82% of health-plan costs in 2026, with employees facing an average out-of-pocket spend of $5,297. Aon expects many employers to implement cost-saving measures to mitigate the increase.
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