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Benefits costs set for sharpest climb in more than two decades
Mercer projects an 8.2% rise in per-employee health benefit costs for 2027 after planned cuts, with costs up about 11% without action. The increase would be the largest since 2003, keeping pressure on employers and workers.
Selecting a health plan is a complicated task for employers, but it remains central to recruiting and keeping good staff. New cost projections make that balancing act harder.
A recent Mercer study found that employers expect the total cost of health benefits per employee to climb 8.2% in 2027, even after planned cost-cutting steps. If employers took no action, their current plans would rise by roughly 11%, according to what they told Mercer.
The projected 8.2% increase would be the largest since 2003. Employers are again reacting in ways the source describes as familiar, with the pressure falling on workers as costs rise.
The figures point to a narrow margin for benefits managers: contain spending without weakening the coverage used to attract and retain employees. The source argues better options exist, but the excerpt does not detail them.
Source: The Guardian
Written with AI from the linked source