Survey on Health and Benefit Strategies for 2027
Health & Benefit Strategies for 2027
The ongoing acceleration in the healthcare cost trend is the backdrop to strategic planning for 2027. After an increase of 6% in 2025, the average total health benefit cost per employee is expected to rise 6.7% in 2026, the highest increase since 2010. And that’s after accounting for planned cost-reduction measures. Employers estimated that plan cost would increase by more than 9%, on average, if they took no action to lower cost. 2026 will be the fourth consecutive year of elevated health benefit cost growth following a decade of moderate annual increases averaging only about 3%. At this point, for many employers, taking action to reduce cost growth has become imperative.
What US employers are planning for 2027:
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Using multiple levers to disrupt persistent cost growthWith cost increases at unsustainable levels for many employers, no cost management strategy is off the table. While some will use traditional cost-shifting, others are choosing alternative medical plans that steer employees to higher-value providers.
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Unlocking value with AIA major focus for employers looking to manage the benefit budget will be performance measurement. Data analytics powered by AI can help determine if investments in specialized health programs are providing real value. Employers are also incorporating AI into benefit administration, improving efficiency and the employee experience at the same time.
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Targeted benefits and financial wellnessEmployers are supporting varied workforce needs with benefits selected to deliver meaningful impact. This includes a focus on financial wellness – because the ability to afford healthcare doesn’t exist in a vacuum.
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