Getting health insurance from your job will be extra pricey for 2027

By Tami Luhby, CNN

(CNN) — Workers might start feeling faint when they sign up for work-based health coverage for 2027.

Premiums are expected to skyrocket for the fourth year in a row, and employees will likely pay more when they receive care, too. The increased costs will put an additional squeeze on Americans’ already-tight budgets, adding to the nation’s affordability crisis that has become a centerpiece of the upcoming midterm elections.

Employers’ healthcare costs are forecast to jump 9.5% next year, though companies are likely to make changes to their benefits to mitigate the increase somewhat, according to Aon, an insurance brokerage firm. The projection is in line with those from other consulting firms and industry groups.

After years of relatively tepid healthcare inflation, employers are now facing a prolonged stretch of elevated costs spurred by Americans’ increased use of health services, pricey treatments for cancer and other conditions and the ongoing demand for expensive obesity medications, among other factors.

Workers will also feel the pain since employers have exhausted many of the options they have to control costs, and some must turn to more drastic measures, said Todor Penev, head of US health analytics at Aon.

“The affordability crisis is real,” he said. “It’s going to be much more noticeable with annual enrollment.”

This year, workers saw their share of health insurance premiums rise 9%, on average, to nearly $7,500 for family coverage, according to KFF’s Employer Health Benefits Survey, published on Thursday. At the same time, workers’ raises only amounted to 3.7%, on average, according to KFF.

At OSI Packaging in Shreveport, Louisiana, workers saw their premiums jump to $300 a month in 2026, up $100 from the prior year, said controller Julie Eason. But the company, which has six employees in the health plan, was able to keep out-of-pocket costs the same.

The company, which distributes and services packaging material and equipment, only started offering health coverage in May 2025 to help it fill job openings. While OSI is committed to providing good coverage at low cost, it may have to make some hard choices if expenses jump again next year, Eason said.

But if that happens, the workers will have a say about whether to raise premiums or their copays.

“It’s their healthcare,” she said. “It’s only right to let them decide.”

At the University Club of Michigan State University, Debbie Barosko has a difficult decision to make soon. The human resources director of the member social club has to determine whether employees will face a nearly 13% hike in premiums for 2027 but keep the same $1,000 deductible; or whether to increase the deductible to $1,500, which mitigates the premium increase to about 7%.

The 30 workers on the plan already had to deal with a 9% premium hike and a doubling of their deductible for this year after the club’s longtime health insurer stopped operating.

Barosko is weighing whether to keep the deductible low, which is more favorable for recruiting, or raise it, which would blunt the plan’s cost, both for workers and the club.

“It’s hard to stomach for the employees and the employer when you’re increasing the premiums but diluting the benefits,” she said.

Companies stop covering drugs for weight loss

For the coming year, employees will have to pay more attention when looking at their options and using their benefits. For instance, they may have lower co-pays if they see doctors in newly designated preferred networks. And they should double check that the out-of-pocket costs for their medications haven’t increased.

“The likelihood that people will see changes makes it critically important for them to invest the time to understand what the changes mean for them,” said Jim Winkler, chief strategy officer at the Business Group on Health, an employer advocacy organization.

One major change is that fewer employers are covering GLP-1 drugs for weight loss since it is a major driver of cost increases, according to the organization, whose members skew to larger employers. Coverage fell to 60% this year, down from 72% in 2025. Plus, the group hasn’t heard that any companies are starting to cover the medications for weight loss.

Americans, however, now have more ways to buy the blockbuster weight loss drugs – including Eli Lilly’s Zepbound and Foundayo and Novo’s Wegovy. The manufacturers offer their products at a discount for those willing to pay cash and forgo insurance. Prices range from $149 to $699 depending on the medication and dosage.

“What’s increasing is the number of options that employers see either for themselves or for their members to access these drugs outside of the traditional covered channels,” said Magda Rusinowski, vice president at the Business Group on Health.

Some employers are considering whether to help their staffers buy GLP-1 drugs for weight loss directly from the manufacturers or other partners, such as Costco’s pharmacy, said Matthew Rae, associate director at KFF. Companies could help subsidize the purchases through Health Reimbursement Arrangements, or HRAs.

“Ultimately, employers offer health benefits that they hope employees will value, and many employees see GLP-1 coverage as an important part of that,” he said. “If they can find ways to provide that coverage at a lower cost, they’re likely to do it.”

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