--- title: "2027 Healthcare Cost Trends: HR and EAP Strategies" description: Healthcare costs are increasing in 2027. See how HR and EAPs can respond. image: https://blog.ulliance.com/hubfs/Healthcare%20Costs%20Rising.png --- Enhancing People. Improving Business. - [Get Help](https://ulliance.com/employee-counselors/) - [EAP Login](https://lifeadvisoreap.com) - [Well-being Login](https://lifeadvisorwellness.com/UserLogin/Login) [![Ulliance](https://blog.ulliance.com/hs-fs/hubfs/Ulliance_May2019%20Theme/images/Ulliance-Logo.svg?t=1557205045032&width=860)](https://ulliance.com/) - [Services](https://ulliance.com/human-resource-services-solutions/) - [Employee Assistance Program](https://ulliance.com/human-resource-services-solutions/best-employee-assistance-programs/) - [Wellness Program](https://ulliance.com/human-resource-services-solutions/life-advisor-wellness-programs/) - [Training & Development](https://ulliance.com/human-resource-services-solutions/training-development/) - [Organizational Development Consulting](https://ulliance.com/human-resource-services-solutions/organizational-development-od-consulting/) - [Outplacement Services](https://ulliance.com/human-resource-services-solutions/outplacement-services/) - [Incident & Crisis Management](https://ulliance.com/human-resource-services-solutions/workplace-crisis-management/) - [Student Assistance Program](https://ulliance.com/human-resource-services-solutions/student-assistance-program/) - [Workplace Substance Abuse Services](https://ulliance.com/human-resource-services-solutions/workplace-substance-abuse-services/) - [EAP Resources](https://ulliance.com/employee-wellness-resources/eap-resources/) - [What Is An EAP?](https://ulliance.com/employee-wellness-resources/eap-resources/#what-is-an-eap) - [Why Does Our Company Need An EAP?](https://ulliance.com/employee-wellness-resources/eap-resources/#why-need-an-eap) - [Types of EAPs and EAP Providers](https://ulliance.com/employee-wellness-resources/eap-resources/#types-of-eap) - [What Comes With An EAP?](https://ulliance.com/employee-wellness-resources/eap-resources/#what-comes-with-eap) - [EAP Costs Per Employee](https://ulliance.com/employee-wellness-resources/eap-resources/#eap-cost-per-employee) - [How To Choose An EAP For Your Company](https://ulliance.com/employee-wellness-resources/eap-resources/#how-to-choose-an-eap) - [How To Implement An EAP](https://ulliance.com/employee-wellness-resources/eap-resources/#how-to-implement-eap) - [Common Questions Your Employees Might Have About Their EAP](https://ulliance.com/employee-wellness-resources/eap-resources/#common-questions) - [When Should We Upgrade Our EAP?](https://ulliance.com/employee-wellness-resources/eap-resources/#update-our-eap) - [A Good EAP Pays For Itself](https://ulliance.com/employee-wellness-resources/eap-resources/#good-eap-pays-for-itself) - [Download the Ultimate Guide](https://ulliance.com/employee-wellness-resources/eap-resources/#print) - [Resources](https://ulliance.com/employee-wellness-resources/) - [Well-being Resources](https://ulliance.com/employee-wellness-resources/well-being-resources/) - [Training Resources](https://ulliance.com/employee-wellness-resources/training-resources/) - [Video Resource Library](https://ulliance.com/video-resource-library/) - [HR Professionals](https://ulliance.com/hr-professional-support/) - [Brokers](https://ulliance.com/broker-healthcare-consultants/) - [About Us](https://ulliance.com/about-us/) - [Leadership](https://ulliance.com/about-us/company-leadership/) - [Careers](https://ulliance.com/about-us/careers/) - [Blog](https://blog.ulliance.com/) [![Healthcare Costs Rising](https://blog.ulliance.com/hubfs/Healthcare%20Costs%20Rising.png "Healthcare Costs Rising")](https://ulliance.com/get-a-quote/) # 2027 Healthcare Cost Trends: HR and EAP Strategies 2027 Healthcare Cost Trends: HR and EAP Strategies 13:05 ## Rising Healthcare Costs in 2027: What HR Leaders Can Do --- --- ## Key Takeaways   - Three major forecasts project ***healthcare cost increases of 9% or more in 2027***, with prescription drugs and cancer care among the largest drivers. - ***Behavioral health costs are rising mainly because more people are using care***, which makes employee access to support part of the cost conversation. - HR's influence runs through decisions inside the organization, such as how cost increases are communicated and whether an underused program needs better promotion before it's cut. - The [Ulliance Life Advisor Resolution EAP Model®](https://www.youtube.com/watch?v=g1pCP_0wFQo) gives employees confidential counseling and 24/7 crisis support, and Ulliance reports that 96% of client issues are resolved or managed through the model. [For HR leaders](https://ulliance.com/hr-professional-support/), the fourth quarter usually brings the hardest benefits math of the year. Heading into 2027, employers face another round of near double-digit increases, and rising healthcare costs have become a leadership-level concern. Much of that pressure comes from forces outside any HR department's reach, from specialty drug prices to hospital rates set in increasingly concentrated markets. Still, HR shapes to some extent how an organization responds, including how costs are shared with employees and how easily people can get help when they need it. Employees are feeling the strain from their side, too. Aon, a global professional services firm that advises employers on health benefits, *expects the average employee to spend nearly $5,300 on health care in 2026,* counting both payroll contributions and out-of-pocket expenses. With so much of the cost outside HR's control, the practical question for 2027 is where HR's choices can still make a difference for employees and the organization alike. > *"Our sense is that this is the new norm."* > ~ Johnny C. Taylor, Jr., SHRM-SCP, President and CEO of SHRM --- [![  Download the Ultimate EAP Guide and learn what drives real results.   Start Resolving Issues Many EAPs look similar on the surface. This guide helps you understand the key differences and choose a program that benefits both employees and your organization.  ](https://no-cache.hubspot.com/cta/default/3690782/interactive-225061342243.png)](https://blog.ulliance.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJzNLkZ%2BrznitEYRuNDeN8%2FdAlooVkCO8bx0jEcWQU4ATlMJrY7Rineu2XZX%2BG8U4Vqillkt5O74EJqnKZgnf7U3rOF1gsJklflKSjzr7jR1h0WFiEnbAhsG2CEBnXPGpY%2Fz6KIAdG1ojV6dmgn2a4UM1NW4YCPbjhujMYM3Om60%2F57AUYmpshx7XdCGV1yWILq6GN30s%2FFdRzW4gIhCbE0TKEgIw%2FShKDpi7GLMp7yHtbSTJEgH53eRAILZtdvnIupEoA4TE0%3D&webInteractiveContentId=225061342243&portalId=3690782) --- ## What's Driving Healthcare Costs in 2027? Rising healthcare costs in 2027 trace back to several structural forces, and three major forecasts agree on the direction. Each one measures something slightly different: - PwC, drawing on a survey of health plan actuaries, projects a 9% medical cost trend in 2027, the highest in nearly two decades. Medical cost trend estimates how much the cost of treating patients rises from one year to the next, assuming benefits stay the same. - Business Group on Health, a nonprofit representing large employers, found that employers expect a median 9.2% increase in healthcare costs for 2027 before plan design changes. - Aon projects that employer healthcare costs will rise 9.5% in 2027. Its figure assumes employers make no plan changes and add no care management programs. The data points to several major factors behind the increase, some tied to the price of care and others to how much care people need. ### Prescription Drugs and Specialty Therapies Pharmacy now represents 25% of employers' total healthcare spend, according to Business Group on Health. Health plans report that pharmacy costs continue to outpace overall medical trend, driven by advances in specialty drugs and expanding uses for GLP-1 medications. Many of these therapies improve outcomes for patients, but they also arrive with high price tags and a growing pool of eligible users. ### Cancer Care and High-Cost Claims In Business Group on Health's survey, cancer ranked as the top condition driving employer healthcare spending for the fifth year in a row. 70% of employers named cancer their No. 1 cost driver in 2026, up from 58% in 2025. Aon also points to a growing number of high-cost claims as a contributor to rising medical spending. ### [Provider](https://ulliance.com/employee-wellness-resources/become-a-provider/) Consolidation and Hospital Prices Some of the pressure comes from how care is priced. Health plans describe rising provider reimbursement demands, amplified by market consolidation that weakens their negotiating leverage. When fewer health systems control a regional market, employers and their plans have less room to push back on what care costs. Several of these drivers combine higher prices with broader use, which leaves employers with limited direct influence over them. --- ## Why Behavioral Health Costs Follow a Different Pattern [Behavioral health costs](https://blog.ulliance.com/top-10-behavioral-health-myths-busted)are rising mainly because more people are using care. That sets them apart from cost pressures driven by higher prices for care. PwC's 2027 analysis finds that behavioral health continues to outpace broader medical trend, with utilization increasing 10% from 2023 to 2024 and 62% since 2018. Rising use can reflect people reaching care they need, and the analysis counts expanded behavioral health access among the forces that can improve patient outcomes. The effects also reach past the claims ledger. For self-funded employers, the report notes implications for absence, productivity, disability and overall workforce health. [Mental and physical health also shape each other](https://blog.ulliance.com/the-link-between-mental-health-total-well-being). According to the National Institute of Mental Health, people with a chronic disease face a [higher risk of depression](https://campaigns.ulliance.com/understanding-depression), and people with depression face a higher risk of certain chronic diseases. Research suggests that people who have both tend to have more severe symptoms of both illnesses. Those connections give employers reason to look closely at how employees reach behavioral health care. --- ## 3 Actions HR Leaders Can Take Regarding Rising Healthcare Costs [HR's influence](https://blog.ulliance.com/supporting-employee-wellbeing-the-role-of-hr-and-eap-in-self-compassion) over rising healthcare costs runs through decisions made inside the organization, from how increases are passed along to which programs keep their place in the benefits budget. Those decisions, in turn, shape how employees experience a difficult renewal year. ### 1.Communicating Healthcare Cost Increases to Employees Many employers are already planning changes. In a preliminary Marsh survey of more than 1,800 employers, respondents estimated their current plans would cost 11% more on average if they took no action, and 59% plan to make cost-cutting changes to health benefits in 2027, including higher deductibles that can increase what employees pay out of pocket. When employers increase employees' share of costs, how HR explains the change shapes how employees receive it. [Employees need to understand what's changing and what it will mean for their paychecks and out-of-pocket costs.](https://blog.ulliance.com/why-embedded-eaps-not-worth-cost-hidden-drawbacks-employers-need-to-kn) SHRM suggests employers may also need to help workers evaluate how each plan option fits their health needs and household budget. Speaking at the recent EBRI–SHRM symposium, Johnny C. Taylor, Jr. encouraged employers to explain what they contribute to coverage, since many workers don't realize how much those costs have grown. ### 2. Reviewing [Benefits Vendors](https://blog.ulliance.com/key-questions-ask-your-benefits-broker-how-eaps-maximize-employee-well-bein) and Behavioral Health Programs Rising costs are also pushing employers to look harder at what they already pay for. In a national survey of large employers, 60% said they're elevating prevention and primary care, and 58% reported eliminating vendors that underperform. That review should include the EAP and other behavioral health programs. Low use deserves a closer look before it becomes a reason to cut, since employees may not know a program exists or may worry about confidentiality. HR can ask the provider how employees reach the program and what it can show about resolved issues, including how it defines a resolved issue. ### 3. [Promoting EAP and Behavioral Health Resources](https://blog.ulliance.com/optimizing-your-eap-communication-strategy-proven-tips-for-stronger-employee-support) Year-Round Employees can only use support they know exists. A few practical steps help keep the EAP and other behavioral health resources visible after open enrollment ends: - [Explain how to contact the EAP](https://blog.ulliance.com/hr-boost-eap-engagement-10-essential-tactics) and what to expect from a first call, including how confidentiality works. - [Train managers](https://ulliance.com/human-resource-services-solutions/training-development/) to point employees toward confidential resources when they notice someone struggling. - Repeat the message throughout the year, since the need for support can come up at any time. - Keep contact information easy to find on the intranet, in onboarding materials and in benefits communications. The goal is for employees to know where to turn before they need to. --- ## Where an EAP Fits in a Healthcare Cost Strategy [An employee assistance program (EAP](https://campaigns.ulliance.com/the-ultimate-guide-to-employee-assistance-programs)) gives employees a confidential place to start when a mental health concern or personal problem begins to affect their life and work. That kind of access connects to the behavioral health trend. PwC notes that behavioral health access and effective management can influence medical trend and affordability, and it advises employers to evaluate behavioral health vendors on their ability to improve access. An EAP is built around that first point of contact. The EAP works alongside the health plan. Counselors help employees sort through a concern, and when ongoing care is needed, they can refer employees to resources through the health plan or in the community. That guidance gives employees a clearer route to appropriate care. --- ## How Ulliance Supports Employees and Employers as Healthcare Cost Rise The [Ulliance Life Advisor Resolution EAP Model®](https://campaigns.ulliance.com/get-a-quote-ulliance-website) offers employees proactive, confidential behavioral health support designed to help them address challenges earlier, before those challenges become harder to manage. This flexible EAP has no set visit limit, because the goal is to get to the heart of the matter. For employers, that support fits within a broader cost-management strategy. Employees can reach counseling in person, virtually or by phone, and crisis support is available 24/7. The model also includes coaching, digital resources and referrals. *Ulliance reports that 96% of client issues are resolved or managed through the model.* Each employer also works with a dedicated account manager. One public health department saw that relationship at work during an orientation for its supervisors and managers: > *"We had an orientation session with our Account Manager at one of our supervisor and managers meetings. I received overwhelming positive feedback from our attendees after the meeting. They said she is wonderful, a great presenter, and very approachable. During the session, we also had an employee share their positive experience with using Ulliance counseling services."* > ~ Human Resources Analyst, Metro Public Health Department, Nashville, TN HR leaders planning their 2027 benefits strategy can reach out to the [Ulliance team](https://campaigns.ulliance.com/get-a-quote-ulliance-website)to see how its EAP fits alongside their health plan. --- ---   ## FAQs - Rising Healthcare Costs Why are healthcare costs rising in 2027? Healthcare costs are projected to rise in 2027 because several pressures are building at once. Prescription drug spending keeps climbing as specialty drugs and GLP-1 medications reach more patients. Cancer remains the top cost driver for many large employers, and provider consolidation weakens health plans' leverage over prices. Behavioral health use is also growing. Three major forecasts project increases of 9% or more for 2027. What is medical cost trend? Medical cost trend is the projected percentage increase in the cost of treating patients from one year to the next, assuming benefits stay the same. Because the measure holds coverage constant, it shows the underlying pressure on costs before employers make any plan design changes. Health plans project a 9% trend for 2027. Why are behavioral health costs increasing? Behavioral health costs are increasing mainly because more people are using care. Utilization of behavioral health services rose 62% between 2018 and 2024, according to PwC, and growth has come from sustained use rather than higher prices. Rising use can reflect people reaching care they need. People with a chronic disease face a higher risk of depression, and people with depression face a higher risk of certain chronic diseases. How can HR manage rising healthcare costs without shifting them all to employees? HR can look beyond cost shifting by reviewing benefits vendors and eliminating those that underperform, a step many large employers are already taking. Many are also elevating prevention and primary care. Before cutting a program with low use, HR should check whether employees know it exists. [Clear communication about what's changing in coverage](https://blog.ulliance.com/why-embedded-eaps-not-worth-cost-hidden-drawbacks-employers-need-to-kn), and what it will cost employees, supports each of these decisions. How does an EAP fit into an employer's healthcare cost strategy? An [employee assistance program (EAP)](https://campaigns.ulliance.com/the-ultimate-guide-to-employee-assistance-programs) offers employees a confidential first point of contact for mental health concerns and personal problems. Counselors help employees sort through an issue and refer them to ongoing care through the health plan or community resources when needed. Because behavioral health use is a growing part of medical trend, an EAP gives employers a direct way to support access to care alongside the health plan. --- [![Click to Learn More Contact Ulliance EAP for a better EAP, HR coaching and other employee support tools](https://blog.ulliance.com/hs-fs/hubfs/Stigma%20contact%20us.png?width=1000&height=481&name=Stigma%20contact%20us.png)](https://campaigns.ulliance.com/get-a-quote-ulliance-website) --- Matt Pambid Psychotherapist **About the Author** **Matt Pambid, LMSW**, is a licensed psychotherapist with more than **30 years of clinical experience** helping individuals navigate stress, anxiety, relationship challenges, life transitions, and workplace concerns. He spent **over a decade at Ulliance**, where he provided counseling, supported Employee Assistance Program (EAP) services, and authored educational articles that translated evidence-based mental health research into practical strategies for employees, leaders, and HR professionals. Passionate about making psychology accessible, Matt has dedicated his career to helping people build resilience, strengthen emotional well-being, and thrive both personally and professionally. --- *When you partner with Ulliance, our Life Advisor Consultants are always just a phone call away to teach ways to enhance your work/life balance and increase your happiness. The [Ulliance Life Advisor Employee Assistance Program](https://ulliance.com/employee-wellness-resources/eap-resources/) can help employees and employers come closer to a state of total well-being.* Investing in the right EAP or Wellness Program to support your employees will help them and help you.  Visit[https://ulliance.com/](https://ulliance.com/) or call 866-648-8326. **The Ulliance Employee Assistance Program can address the following issues:** • Stress about work or job performance • Crisis in the workplace • Conflict resolution at work or in one’s personal life • Marital or relationship problems • Child or elder care concerns • Financial worries • Mental health problems • Alcohol/substance abuse • Grief • Interpersonal conflicts • AND MORE! ---   --- References: Aon: U.S. Employer Health Care Costs Continue Multi-Year Climb, Projected to Rise 9.5% in 2027; Aon plc [https://aon.mediaroom.com/2026-08-20-Aon-U-S-Employer-Health-Care-Costs-Continue-Multi-Year-Climb,-Projected-to-Rise-9-5-in-2027](https://aon.mediaroom.com/2026-08-20-Aon-U-S-Employer-Health-Care-Costs-Continue-Multi-Year-Climb,-Projected-to-Rise-9-5-in-2027) Cost Volatility Forces Employers To Reassess Healthcare Strategy, Business Group on Health Survey Reveals; Business Group on Health [https://www.businessgrouphealth.org/newsroom/news-and-press-releases/press-releases/2027-employer-healthcare-strategy-survey](https://www.businessgrouphealth.org/newsroom/news-and-press-releases/press-releases/2027-employer-healthcare-strategy-survey) Employers expect health benefit costs to jump 8.2% in 2027, and the impact will likely be felt by workers; Marsh [https://www.mercer.com/en-us/about/newsroom/employers-expect-health-benefit-costs-to-jump-in-2027/](https://www.mercer.com/en-us/about/newsroom/employers-expect-health-benefit-costs-to-jump-in-2027/) Medical cost trend 2027: Behind the Numbers; PwC Health Research Institute [https://www.pwc.com/us/en/industries/health-industries/library/behind-the-numbers.html](https://www.pwc.com/us/en/industries/health-industries/library/behind-the-numbers.html) Soaring Health Costs May Be the New Norm. Employers Must Adapt; SHRM; Kathryn Mayer https://www.shrm.org/topics-tools/news/benefits-compensation/soaring-health-costs-may-be-new-norm-employers-must-adapt   ---   ###### [About Us](https://ulliance.com/about-us/) - [Leadership](https://ulliance.com/about-us/company-leadership/) - [Careers](https://ulliance.com/about-us/careers/) --- ###### [Resources](https://ulliance.com/employee-wellness-resources/) - [EAP Resources](https://ulliance.com/employee-wellness-resources/eap-resources/) - [Training Resources](https://ulliance.com/employee-wellness-resources/training-resources/) - [Well-being Resources](https://ulliance.com/employee-wellness-resources/well-being-resources/) - [Video Resource Library](https://ulliance.com/video-resource-library/) ###### [Services](https://ulliance.com/human-resource-services-solutions/) - [Employee Assistance Program](https://ulliance.com/human-resource-services-solutions/best-employee-assistance-programs/) - [Wellness Program](https://ulliance.com/human-resource-services-solutions/life-advisor-wellness-programs/) - [Training & Development](https://ulliance.com/human-resource-services-solutions/training-development/) - [Organizational Development Consulting](https://ulliance.com/human-resource-services-solutions/organizational-development-od-consulting/) - [Outplacement Services](https://ulliance.com/human-resource-services-solutions/outplacement-services/) - [Incident & Crisis Management](https://ulliance.com/human-resource-services-solutions/workplace-crisis-management/) - [Student Assistance Programs](https://ulliance.com/human-resource-services-solutions/student-assistance-program/) - [Workplace Substance Abuse Services](https://ulliance.com/human-resource-services-solutions/workplace-substance-abuse-services/) --- ###### [HR Professionals](https://www.ulliance.com/hr-professional-support/) We assemble everything you need to know to make the right decision for your people. --- ###### [Brokers & Consultants](https://ulliance.com/broker-healthcare-consultants/) Test out configurations with our ROI Calculator and get shareable resources for your clients. --- ###### [Blog](https://blog.ulliance.com) [Contact Us](https://ulliance.com/get-a-quote) ###### [facebook](https://www.facebook.com/Ulliance/) [instagram](https://www.instagram.com/ulliance/) [twitter](https://twitter.com/Ulliance) [pinterest](https://www.pinterest.com/ulliance/pins/) [linkedin](https://www.linkedin.com/company/ulliance-inc/) [ULLIANCE HQ](https://www.google.com/maps/place/Ulliance,+Inc./@42.5620874,-83.1965503,17z/data=!3m1!4b1!4m6!3m5!1s0x8824c6a07511aa29:0xdf123af96248279b!8m2!3d42.5620874!4d-83.1939754!16s%2Fg%2F1260krrwn?authuser=0&hl=en&entry=ttu&g_ep=EgoyMDI2MDcyMC4wIKXMDSoASAFQAw%3D%3D)  3250 W. Big Beaver Rd, Suite 200, Troy, MI 48084  [Privacy Policy](https://ulliance.com/privacy-policy) --- [Terms & Conditions](https://ulliance.com/terms-of-use/) --- Copyright © 2018 Ulliance, Inc. All Rights Reserved × Search Submit Clear ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Healthcare costs are projected to rise in 2027 because several pressures are building at once. Prescription drug spending keeps climbing as specialty drugs and GLP-1 medications reach more patients. Cancer remains the top cost driver for many large employers, and provider consolidation weakens health plans' leverage over prices. Behavioral health use is also growing. Three major forecasts project increases of 9% or more for 2027." }, "name" : "Why are healthcare costs rising in 2027?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Medical cost trend is the projected percentage increase in the cost of treating patients from one year to the next, assuming benefits stay the same. Because the measure holds coverage constant, it shows the underlying pressure on costs before employers make any plan design changes. Health plans project a 9% trend for 2027." }, "name" : "What is medical cost trend?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Behavioral health costs are increasing mainly because more people are using care. Utilization of behavioral health services rose 62% between 2018 and 2024, according to PwC, and growth has come from sustained use rather than higher prices. Rising use can reflect people reaching care they need. People with a chronic disease face a higher risk of depression, and people with depression face a higher risk of certain chronic diseases." }, "name" : "Why are behavioral health costs increasing?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "HR can look beyond cost shifting by reviewing benefits vendors and eliminating those that underperform, a step many large employers are already taking. Many are also elevating prevention and primary care. Before cutting a program with low use, HR should check whether employees know it exists. Clear communication about what's changing in coverage, and what it will cost employees, supports each of these decisions." }, "name" : "How can HR manage rising healthcare costs without shifting them all to employees?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "An employee assistance program (EAP) offers employees a confidential first point of contact for mental health concerns and personal problems. Counselors help employees sort through an issue and refer them to ongoing care through the health plan or community resources when needed. Because behavioral health use is a growing part of medical trend, an EAP gives employers a direct way to support access to care alongside the health plan." }, "name" : "How does an EAP fit into an employer's healthcare cost strategy?" } ] } ```