Employer health insurance premiums projected to rise in 2027
Experts cite rising healthcare spending and broader inflation as key drivers behind projected 2027 premium hikes.
Rural hospitals in the United States (Photo via PBS NewsHour)
Annual premiums for employer-provided healthcare coverage are expected to see significant increases in 2027, placing a larger financial burden on employees. Analysts currently project that these costs could rise by as much as 9.5% next year, although experts suggest the final figures may ultimately be lower than these initial estimates.
This upward trend in insurance costs follows a period of consistent growth in healthcare spending. According to a KFF analysis, the average cost for an employer-based family healthcare plan reached $28,303 in 2026, marking a 5% increase over the previous year. During that same timeframe, the portion of costs covered by workers rose by 9%, amounting to an average annual contribution of approximately $7,470.
The rising cost of medical coverage is occurring alongside broader increases in the prices of other essential goods, including groceries and gasoline. Matthew Rae noted that these cumulative financial pressures are creating significant affordability challenges for many individuals who rely on job-based health insurance coverage.