Employers and employees are facing another year of significant health care cost increases, according to new data from the benefits consultancy firm Aon. The report estimates that costs per employee will climb to over $19,000 in 2027, marking a 9.5% increase. This trend continues a multi-year period of sustained health care inflation that has placed financial pressure on both companies and their workforces.

The projected cost hike is driven by several factors, most notably an increase in the demand for health care services. Additionally, the prevalence of chronic diseases and the growing popularity and usage of GLP-1 drugs—often used for weight loss and diabetes management—are cited as primary contributors to the rising expenses.

This forecast suggests that the financial strain on employer-sponsored health plans is unlikely to abate in the near term. As costs continue to rise, the report highlights growing concerns regarding the long-term affordability of health benefits for workers and the sustainability of these plans for employers. While the report focuses on the fiscal projections for 2027, it underscores a broader, ongoing challenge in the health care sector regarding the management of rising medical inflation.