Workers preparing for the 2027 enrollment period may encounter significant financial strain as employer-provided health insurance premiums continue their upward trajectory for the fourth consecutive year. Recent industry projections, including findings from the insurance brokerage firm Aon, suggest that healthcare costs for employers are expected to climb by 9.5% next year. These rising expenses are intensifying the national affordability crisis, which remains a focal point for American voters. Workers might start feeling faint when they sign up for work-based health coverage for 2027. The projection is in line with those from other consulting firms and industry groups. The workers will have a say about whether to raise premiums or their copays, but if that happens. 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. The manufacturers offer their products at a discount for those willing to pay cash and forgo insurance.
According to Todor Penev, head of US health analytics at Aon, the situation is becoming increasingly difficult as many businesses have exhausted standard cost-containment measures and are now weighing more drastic options. The affordability crisis is tangible and will be particularly pronounced during the upcoming annual enrollment window, Penev noted. Adding to the nation’s affordability crisis that has become a centerpiece of the upcoming midterm elections, the increased costs will put an additional squeeze on Americans’ already-tight budgets.
Data from the KFF Employer Health Benefits Survey highlights the scale of this imbalance: while workers experienced an average 9% increase in their share of health insurance premiums this year, reaching nearly $7,500 for family coverage, their average annual raises amounted to only 3.7%. This gap underscores the deepening pressure on household budgets as healthcare inflation outpaces wage growth. “It’s their healthcare,” she said. “It’s only right to let them decide.”.
Employers are currently navigating a complex environment characterized by increased utilization of health services, expensive treatments for conditions like cancer, and sustained demand for high-cost obesity medications. At the University Club of Michigan State University, human resources director Debbie Barosko is currently weighing a 13% premium hike against the alternative of raising deductibles to $1,500 to mitigate cost increases. These decisions are complicated by the need to maintain attractive benefits for recruitment, with Barosko noting the difficulty of balancing employer fiscal health with the burden on staff. 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.
Small businesses are feeling similar constraints. Julie Eason, controller at OSI Packaging in Louisiana, reported that premiums rose by $100 per month in 2026. While the company maintained stable out-of-pocket costs this year, further expense hikes in 2027 could necessitate difficult adjustments, though Eason emphasizes that any shift in coverage structure should involve employee input. According to at OSI Packaging in Shreveport, Louisiana, workers saw their premiums jump to $300 a month in 2026, up $100 from the prior year,, Controller Julie Eason.
A significant factor driving these costs is the ongoing management of GLP-1 weight-loss drugs. Organizations such as the Business Group on Health report that the percentage of employers covering these medications has dropped from 72% in 2025 to 60% this year. Because traditional insurance coverage is tightening, some companies are exploring creative alternatives. Matthew Rae, an associate director at KFF, suggests that some employers are considering subsidizing direct purchases from manufacturers or partners like Costco through arrangements such as Health Reimbursement Arrangements. The company, which distributes and services packaging material and equipment, only started offering health coverage in May 2025 to help it fill job openings. According to the organization, whose members skew to larger employers, 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 “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,”, Magda Rusinowski, vice president at the Business Group on Health. “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 c.
Although these medications, including Wegovy and Zepbound, are available through manufacturer-discounted cash programs ranging from $149 to $699, they remain a primary focus for employees. Jim Winkler, chief strategy officer at the Business Group on Health, advises workers to carefully review their benefit options this year. Changes to preferred provider networks and shifts in medication copays make it essential for employees to understand their specific plan details before the enrollment deadline. For instance, they may have lower co-pays if they see doctors in newly designated preferred networks. Prices range from $149 to $699 depending on the medication and dosage.
