Aon’s Health Value Initiative database projects U.S. employer healthcare costs will rise 9.5% in 2027, pushing average spending beyond $19,000 per employee. This follows a multiyear trend of near-double-digit growth driven by medical utilization, chronic conditions, and high-cost claims, according to an Aon report. Growing use of specialty medications and GLP-1 therapies also pressures prescription drug budgets. The database covers over 1,100 U.S. employers with 7.9 million employees and $135 billion in 2026 healthcare spending.
Cost Trends and Employee Contributions
Average employer costs increased nearly 9% in 2026 to $14,432 per employee, up from $13,269 the previous year. Employee payroll contributions rose 6.4% to $3,130, pushing total plan costs to $17,562, an 8.3% increase. Employers covered 82.2% of plan costs in 2026, slightly up from 81.8% in 2025. Cost increases varied widely, with the middle 50% of employers reporting changes between 5.5% and 11.5%.
Employees face growing affordability challenges, with combined payroll contributions and out-of-pocket costs averaging $5,297 in 2026, up 8% from the prior year. Out-of-pocket spending increased 10.2% to $2,167, reflecting higher utilization and enrollment in plans with greater employee cost-sharing.
Industry Variations and Emerging Factors
Healthcare industries experienced significant cost growth, with employer increases ranging from 6.5% to 9.8% across sectors. Technology and communications saw a 9.1% rise, while public-sector costs grew 8.8%. Aon identified detailed clinical documentation and coding supported by AI as emerging cost factors, potentially contributing to higher billed charges.
Conventional cost-containment strategies may no longer suffice, the report states. A June PwC report found healthcare costs are projected to reach their highest level in nearly two decades, with 70% of surveyed health plans ranking provider AI tools among their top three cost drivers. Hospital financial pressures persist as higher volumes of uninsured and government-covered patients strain long-term sustainability, according to a February Kaufman Hall National Hospital Flash Report.
Mike Pasterick, Aon’s North America Health Solutions leader, noted that at this level, rising healthcare costs influence organizational decisions beyond budgeting, affecting benefits strategy, employee affordability, and broader workforce and financial planning priorities.
The expansion of GLP-1 drug use for cardiovascular disease, sleep apnea, and chronic kidney disease could further complicate employers’ efforts to balance access and affordability, the report says.
