Employer healthcare expenses could spike 9.5% in 2027, pressured by GLP-1s
Chad Van Alstin|August 20, 2026|Health Exec|Economics
Employers can expect healthcare costs for their workers to rise by 9.5% next year, pushing the average per-employee expenditure above $19,000, a new report from business intelligence firm Aon reveals
In an announcement, the group outlined how even efforts to contain costs have not been enough in recent years to stop employers and employees from absorbing the burden of healthcare price inflation
Since 2022, employer healthcare costs have “more than doubled,” spiking from 3.7% to now 8.8% in 2026. As Aon noted, employers are responsible for roughly 82% of the cost to provide their staff with medical insurance, and ultimately cannot take on the full burden of rising premiums
This leaves employees to pay more out of pocket, both up front and at the point of care. According to Aon, the middle 50% of employers “experienced increases ranging from 5.5% to 11.5%, demonstrating the wide variation in cost pressures organizations are facing.”
“Employers have now experienced several consecutive years of health care cost increases that are approaching double digits,” Mike Pasterick, North America Health Solutions Leader for Aon, said in a statement. “At this level, rising health care costs become much more than a budgeting challenge and influence organizational decisions from benefits strategy and employee affordability to broader workforce and financial planning priorities.”
“Leaders are undergoing pressure to maintain affordable benefits while continuing to invest in attracting, supporting and retaining talent.”
Aon added that its price increase projections mark the fourth consecutive year where inflation numbers are approaching double digits. The firm called the landscape one of the “most sustained periods of healthcare inflation employers have faced in decades.”
Chronic illness and weight loss
Looking at factors beyond the broader economy, Aon pointed to contributing factors in the workforce that increase healthcare utilization, thus raising the price tag on medical coverage. For starters, chronic conditions have become more prevalent, bringing with them high-cost medical claims
On a related note, prescription drug spending continues to rise. In particular, Aon said the increased use of expensive GLP-1 therapies, the use of which continues to expand, means more employer plans are having to cover the costs for staff
Beyond weight loss, GLP-1s are used to manage chronic conditions associated with blood glucose and metabolic health, including diabetes, cardiovascular disease, sleep apnea and chronic kidney disease
Aon stated that as “emerging oral formulations broaden access” pressure is rising for employers to find ways to get the medications covered, bringing new challenges related to balancing “access, affordability and long-term sustainability.”
Aon added that benefit changes and care-management programs, which may be necessary to offset rising healthcare costs more broadly, were not a factor in its pricing projection
For more, read its full report by clicking here
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Chad Van Alstin
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations
