Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTanya RawatSun, August 23, 2026 at 8:01 PM GMT+2 5 min readBenzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.Aon plc said U.S. employer health care costs are projected to rise 9.5% in 2027, pushing average costs above $19,000 per employee.The projection would mark the fourth consecutive year of elevated health care cost increases approaching double digits. In a release issued Thursday, Aon said the trend extends one of the most sustained periods of health care inflation employers have faced in decades.Don't Miss:A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and whyStill Learning the Market? These 50 Must-Know Terms Can Help You Catch Up FastHealth Care Costs Keep RisingAon said higher medical utilization, the growing prevalence of chronic conditions and an increase in high-cost claims are contributing to the rise in health care spending.Prescription drug costs are also a significant factor, particularly as employers see greater use of specialty medications and GLP-1 treatments. Aon noted that these therapies are expanding into areas including cardiovascular disease, sleep apnea and chronic kidney disease, while newer oral treatments could broaden access.The pressure is already being felt by employers. Aon said employer health care costs rose 8.8% in 2026, up from 3.7% in 2022. Employers currently absorb about 82% of total health plan costs.Employees are also facing higher expenses. Average employee health care costs are expected to reach about $5,300 in 2026, including payroll contributions and out-of-pocket costs.Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big TimeGLP-1 Drugs Add to Employer CostsThe growing use of GLP-1 medications has become a notable expense for large employers.Bank of America Corp said in August that it spends more than $2 billion annually on employee health care, with GLP-1 medications accounting for about 13% of that spending. CEO Brian Moynihan called the coverage a long-term investment in employee health and productivity.Earlier cost estimates also showed employer health benefit costs were already rising sharply. Mercer projected a 6.7% increase in health benefit costs per employee in 2026, while nearly half of large employers were expected to raise deductibles, copays or other out-of-pocket costs for workers in 2027.Employers Face More Cost PressureAon said providers' growing use of technologies such as artificial intelligence for clinical documentation and coding could also contribute to higher billed charges.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info