Consumers face substantial increases in health insurance costs for the coming year as multiple factors converge to drive up expenses across the healthcare system. Multiple consulting firms project double-digit cost increases for employers providing health benefits, with estimates ranging from 8.2% to 11.1% annually. These elevated costs are likely to be passed along to workers through higher premiums, increased deductibles, and greater out-of-pocket expenses.
Among the approximately 166 million Americans with employer-sponsored coverage, workers will likely shoulder more of the financial burden. Nearly 60% of employers plan to implement cost-cutting measures including higher deductibles in 2027. Workers’ total healthcare costs, including both premiums and out-of-pocket expenses, increased 7.9% in 2026 and are expected to rise at a similar rate this year. Over the past decade, deductible and premium growth have significantly outpaced general inflation.
For the roughly 19.2 million Americans purchasing coverage through the Affordable Care Act marketplace, median premium increases of 15% have been proposed by insurers for 2027, marking the second consecutive year of double-digit hikes. Those earning between certain income thresholds receive federal subsidies that shield them from premium increases, but approximately 1.6 million marketplace enrollees with incomes exceeding 400% of the federal poverty line face the full unsubsidized cost of these higher premiums.
Health policy experts attribute the sharp cost increases to various factors, most notably the growing use of GLP-1 medications for weight management, which accounts for approximately 1 percentage point of overall employer cost growth. The current healthcare cost surge follows roughly two decades of relatively moderate spending growth, though experts remain uncertain whether this trend marks a significant departure from the previous period of moderation.
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