The big picture: Nearly half of large U.S. employers plan to increase workers' deductibles or copays in 2027, driven by the steepest health-benefit cost increases since 2010.

Why it matters: This cost-shifting strategy impacts employee compensation, retention, and overall workforce well-being, forcing HR and benefits leaders to balance affordability with rising healthcare expenditures.

Between the lines:

• Employer health-benefit costs are projected to climb 6.7% in 2026, exceeding $18,500 per employee.
• 31% of large employers are exploring or already offering non-traditional medical plans to steer employees toward higher-value providers.
• Specialty drugs, gene therapies, and GLP-1 medications are significant drivers of rising pharmacy costs.

Staffing & HR impact: Increased out-of-pocket healthcare costs can affect employee satisfaction and potentially influence talent acquisition and retention strategies. HR departments will need to communicate these changes effectively while exploring alternative benefit structures to remain competitive.

The bottom line: The trend of employers passing on healthcare costs to employees is accelerating, signaling a continued evolution in benefits design and a challenge for workforce affordability.