Comp & Benefits
Healthcare costs approach double-digit increases, employers face a 'turning point'
The latest annual survey by the Business Group on Health (BGH) shows that healthcare costs for large employers are expected to rise nearly 10% in 2027, with an actual increase of 8.8% in 2025, the highest on record. Employers face 'unprecedented' cost pressure and are responding by reviewing suppliers, introducing new pharmacy benefit management models, and tightening GLP-1 coverage.
Medical costs expected to rise nearly 10% in 2027, adding pressure on employers and employees
New research released by professional services firm Aon predicts that average U.S. employer medical costs will surpass $19,000 per employee in 2027, a 9.5% increase year-over-year. Although employers cover over 80% of health insurance costs, the burden on employees is also rising significantly: average employee out-of-pocket expenses are expected to reach $5,297 in 2026, up 7.9% from 2025. The study notes that rising chronic disease prevalence, specialty drugs, and the adoption of GLP-1 therapies are driving up medical expenditures, while AI applications are indirectly impacting medical billing. Employers face the dual challenge of balancing benefit sustainability with talent attraction.
Rising Costs Push 35% of U.S. Workers to Delay Retirement, Survey Finds
New survey data from MyPerfectResume reveals that 35% of U.S. workers have delayed their planned retirement age due to rising living costs, and 14% do not expect to fully retire. The findings highlight the impact of immediate financial obligations on long-term savings.
Survey: 83% of Employers Say Rising Healthcare Costs Force Wage Tradeoffs
A survey by the National Alliance of Healthcare Purchaser Coalitions reveals that 83% of employers are forced to make tradeoffs with wage increases due to rising healthcare costs, and 93% expect to shift costs to workers. Retention remains a top priority, with 92% saying costs hurt competitiveness.