Employers across the United States are bracing for a significant rise in health insurance costs in 2027, which could lead to higher expenses for employees as well. A recent survey by the health benefits consulting firm Marsh predicts that the total cost of health benefits per employee—covering both employer and employee contributions—will increase by an average of 8.2% in 2027. This would mark the largest annual increase since 2003. The projection accounts for cost-saving measures employers plan to implement, such as increasing deductibles. While these changes can lower monthly premiums, they often result in higher out-of-pocket costs for employees. Without these measures, health plan costs for employers would rise by an average of 11%, according to Marsh. The rising cost of employer-sponsored health insurance has been driven by several factors, including the increasing cost of treating serious illnesses like cancer, according to the nonpartisan health policy research group KFF. A reduction in the number of healthcare providers has also given them more leverage in negotiating with insurers, leading to higher plan costs. Additionally, the rising prices of prescription drugs, particularly newer treatments such as GLP-1 drugs, are contributing to higher healthcare expenses. These drugs, often used for weight loss, are increasingly covered by employer health plans, but their high costs have led some employers to either drop coverage or impose stricter eligibility requirements. Employers typically cover about 80% of health plan costs, with employees paying the remaining 20%. This split has remained relatively consistent over the past two decades, according to KFF. However, as healthcare costs continue to rise, both employers and employees are likely to share the burden. "Historically, when premiums have gone up, workers and employers have shared the burden," said Matthew Rae of KFF. While some employers may absorb more of the costs due to industry-specific factors, many employees are expected to pay more for medical coverage in 2027. According to Marsh's survey, 59% of employers plan to make changes to their health benefits in 2027 to cut costs, such as increasing deductibles. These changes can lead to higher out-of-pocket expenses for employees. Additionally, about two-thirds of large employers expect to increase the portion of health insurance premiums that employees pay. An earlier Marsh survey found that this trend is likely to continue. Meanwhile, insurance broker and consulting firm Aon projects that in 2024, the average worker will spend around $5,300 annually on health insurance, including both premiums and out-of-pocket costs. This represents a 7.9% increase from the previous year and is the largest percentage increase in a decade. As open enrollment season approaches—typically between September and November—this rising cost is adding to the financial strain on millions of Americans, many of whom rely on employer-sponsored health insurance.