3 Ways Rising Health Insurance Costs Could Hit Your Wallet in 2027
Health insurance premiums are on the rise again. According to Healthinsurance.org, the median proposed individual market premium increase for 2027 is about 15% before subsidies. Rates have already been finalized in about half of U.S. states.
It’s also more expensive for employers. More than 165 million Americans rely on employer-sponsored healthcare coverage. Mercer projects healthcare costs per employee will rise 8.2% next year, and two-thirds of companies with 500 or more employees plan to increase premiums, Fortune reported.
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Here are three silent ways these higher health costs could affect you in 2027.
Your Take-Home Pay Could Shrink
Employees typically pay their portion of health insurance premiums through payroll deductions. Meaning, higher premiums lead to less take-home pay even if gross salary stays the same. Fortune noted that workers with family coverage contributed an average of around $6,850 toward premiums in 2025.
Marsh, parent company of Mercer, concluded that in 2027, many employees will see their paycheck deductions for health coverage increase by more than the 8.2% estimate.
In a survey conducted by Marsh, they also found that many employers are looking for ways to control costs without shifting the increased expense over to employees. This includes offering lower-cost plans and variable copay plans. These typically have no or a low deductible and charge less when members choose top providers for specific health services.
Your Out-of-Pocket Medical Costs Could Increase
In addition to higher premiums, employers can also increase deductibles and copays, which means you could pay more when you need medical care.
A deductible is the amount you have to pay out of pocket before insurance kicks in, while a copay is a fixed amount you pay for certain services, like an annual wellness visit or prescription.
According to Fortune, almost half of employers surveyed by Mercer said they plan to make changes to existing medical plans that will result in higher costs, such as higher deductibles and copays, for employees in 2027.
A higher deductible could make healthcare costs difficult to predict. Premiums and copays are set amounts, but if you have a medical emergency, you may be responsible for hundreds or even thousands of dollars before your plan covers more of your care.
Your Salary Could Grow More Slowly
Navin Nagiah, CEO of healthcare technology company Daffodil Health, also told Fortune that employers have a certain amount they can spend on each employee. That includes salary, healthcare and other benefits.
If more money goes toward healthcare, then wages could grow more slowly.
The Congressional Budget Office (CBO) treats employer health insurance contributions as a substitute for cash wages when measuring household income. According to a CBO analysis cited by Fortune, salaries made up about 91% of total worker compensation in 1960, compared with an average of 82% over the past decade.
The CBO also projects healthcare insurance costs to slightly outpace wages within the next 30 years.
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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