Your health insurance costs could rise nearly 10% in 2027

SOUTHWEST FLORIDA (WINK) — A new report from Aon, a global risk and benefits consulting company, finds employer healthcare costs are projected to rise nearly 10% next year.

Aon projects U.S. employer healthcare costs will rise 9.5% in 2027, pushing the average cost above $19,000 per employee. That would mark the fourth straight year of healthcare cost increases nearing double digits.

Aon says rising medical use, more chronic conditions, high-cost claims and expensive prescription drugs are all contributing to the increase. FSU Assistant Prof. Evan Saltzman says what happens next could depend on new drugs, technology and treatments coming into the market.

"The first thing you think of is what's going to be next year. Are there going to be new technologies? People continuing to use these specialty drugs, right? That's probably first order. Are there new technologies, new drugs, new treatments that are being deployed that's going to probably increase prices," Saltzman said.

Saltzman says employers may have to find ways to offset those higher costs.

"I think you're going to see lots of growth in the employees' contribution. So that out-of-pocket costs will probably go up as employers, maybe they try to keep the employee contribution the same, but they raise deductibles, they raise copays, raise co-insurance," Saltzman said.

Saltzman says those trends can go in waves, with some years seeing slower growth. However, he says the long-term trend has been toward higher healthcare costs.