Large Employers See Record Surge in Health-Care Costs, Survey Finds
A Business Group on Health survey of 127 big firms shows health-care expenses are climbing faster than expected, with projected increases of 8.5% in 2026 and 9.2% in 2027.
Responses from 127 large employers, half of which have workforces of at least 25,000, indicate health-care spending outpaced predictions from 2023 through 2025. Looking ahead, the survey expects cost growth to reach 8.5% in 2026 and 9.2% in 2027, the highest rates on record. Ellen Kelsay, chief executive of the Business Group on Health, warned that the difficulty in budgeting reflects deeper flaws in the health-care system.
She urged companies to reassess whether insurers, consultants and other vendors are providing real value. While the nation’s smallest firms are already abandoning employee coverage at unprecedented rates, larger corporations plan to maintain benefits but remain wary of the rising volatility. The findings come amid broader health-care concerns, including recent measles deaths in Pennsylvania and new research linking the shingles vaccine to lower heart-disease risk.
Why it matters
Rising employer health costs affect workers' access to care and could reshape benefit structures nationwide.
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