Open Enrollment Is Coming: 5 Things That Will Impact Your Wallet
Open enrollment often begins in mid-October for many Americans. Renewing benefits is a natural step for most, as roughly 154 million Americans get health care coverage through their employers, per the Kaiser Family Foundation (KFF).
Unfortunately, many may face significant increases for 2027. Premiums aren’t the only factor to consider. Prescription costs, deductibles and more may cost more. Due diligence will be necessary to avoid a spike in costs next year.
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Premiums Are Increasing
Premiums will increase for most in 2027. Benefit costs are expected to increase by 8.2%, per Mercer. This represents the largest increase since 2003. The firm also reports that two-thirds of employers expect to raise premiums in 2027.
People getting coverage through the Affordable Care Act (ACA) aren’t safe, either. ACA premiums will see a median premium hike of 15%, according to KFF. The takeaway is simple: Compare the price against your 2026 rates. Even a $25 increase every two weeks is $650 more in 2027.
A Higher Deductible or Copay Might Be More Painful
Premiums aren’t the only cost lever employers can use to increase costs. Shifting more responsibility to you for deductibles or copays increases costs, too.
Almost half (48%) of employers anticipate adjusting their plans, including copays or deductibles, per Mercer. It’s already happening, as large employers like Disney and Starbucks are announcing major changes to plans for 2027, according to USA Today.
It’s wise to review all features of a new plan against what you have for 2026. If you regularly see specialists or need ongoing treatments, it may cost you more. Saving $50 monthly on premiums is nice, but not if it means a deductible will increase by $1,000.
Prescription Drug Coverage Could Change
Prescription drug costs are a leading cause of price hikes. Reporting from The New York Times reveals that costly medications for cancer and diabetes, not to mention GLP-1 usage, are all responsible for increases.
The market saw a median 4% increase in drug costs in 2026 for 350 branded medications, according to Reuters. If you take a medication regularly, verify if it has changed tiers, has a different copay or must go through a specific pharmacy in 2027. Even if you choose a cheaper plan for next year, changes in prescription coverage may ultimately make it more expensive.
Cheaper Plans May Have a Hidden Cost
Some employers are reacting to rising health care costs by offering non-traditional plans. They do so under the guise of saving employees money, per Anthem. Possibilities include a high-performance network or variable-copay plan.
There are drawbacks, though. You may lose flexibility and have a smaller network of doctors, or your favorite pharmacy may not be in-network. If you have ongoing medical needs or love your doctor, it pays to do the math to see if the savings are worth it.
HSA Limits Are Increasing, as Are HDHP Thresholds
Health savings accounts (HSAs) can help you manage medical costs and save money pre-tax. Contribution limits are increasing on individual and family plans by $100 and $250, respectively, to $4,500 and $9,000, according to Fidelity.
While nice, deductibles for high-deductible health plans (HDHP) are also increasing, per the IRS. An HSA provides a tax break, but run the numbers to see whether it’s worth it. Review your employer’s contribution, premium savings and expected medical costs to determine if the HDHP is worth the tax break.
Auto-renewing for the same coverage in 2027 will likely cost more. Thoughtfully review the changes and your health care needs to identify how to soften the blow.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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