For most HR teams, 2027 planning is already underway, and it looks different from recent years. Health costs are rising at their fastest pace in more than two decades. Budgets for raises have been flat. New federal rules have created benefits that didn't exist a year ago.
So the job isn't just renewing last year's plan at a higher price; HR has to hold down costs while still offering benefits employees' value, and often with fewer dollars to work with.
Below are the 10 trends that will shape benefits decisions in 2027.
Early results from Mercer's 2027 survey show employer health costs rising 8.2% per employee in 2027, the largest increase since 2003. Without plan changes, the increase would be closer to 11%. Aon projects 9.5% before plan changes, bringing the average cost to about $19,000 per employee.
According to Mercer, 59% of employers plan changes to reduce costs, such as higher deductibles. About two-thirds of large employers expect to raise the share of premiums employees pay.
Coverage of GLP-1 drugs for weight loss fell from 72% to 60% of employers in one year, according to the Business Group on Health. Mercer estimates GLP-1s alone add about 1 percentage point to 2027 cost growth. Employers that keep coverage are adding stricter BMI and clinical requirements.
Pharmacy costs are about a quarter of health spending and are projected to grow about 12% a year. In the Business Group on Health survey, one-third of employers expect to have a transparent PBM in place by 2027, and 58% have replaced or plan to replace underperforming vendors.
In Mercer's survey, 58% of large employers are prioritizing efforts to steer members to higher-quality care. Some are testing plans with lower copays for top-performing providers.
More than 500,000 people now get coverage through an individual coverage HRA (ICHRA), offered by over 20,000 businesses, according to HRA Council data. Adoption among employers with 1,000 or more employees grew 178% year over year.
PwC found that 59% of employees are stressed about their finances, and 53% have less than $5,000 saved for emergencies. With 2027 raise budgets averaging about 3.4%, benefits are carrying more of the load for keeping employees.
Trump Accounts launched July 4, 2026. Employers can contribute up to $2,500 per employee per year toward accounts for employees' children, and those contributions are excluded from the employee's taxable income. The Department of Labor has said these programs generally fall outside ERISA, but more IRS guidance is still coming.
As of 2026, the tax-free limit for dependent care FSAs rose from $5,000 to $7,500. The employer childcare tax credit also grew, to as much as $500,000. The tax-free treatment of up to $5,250 a year in employer student loan help is now permanent.
In Prudential's 2026 study, 83% of employers were interested in using AI for benefits support, compared with 58% of employees. Only 24% of employees use it today, and privacy is the top concern for both groups.
In 2027, the benefits that work will be the ones that control cost and that employees actually understand and use. That means choosing vendors carefully, explaining changes clearly, and putting money into benefits employees feel every day.
One thing all of these trends for 2027 touch on is costs. BeneMoney can help your employees offset any unexpected costs and provide a financial safety net when they need it most. Offering practical financial tools such as a loan program, budgeting help, and debt support may be the most valuable benefit you provide this coming year.
Ask us how BeneMoney can be your support.
How much will employer health costs rise in 2027?
Projections range from about 8% to 9.5% per employee, the highest in over 20 years. Without plan changes, costs could rise as much as 11%.
What are the 2027 HSA contribution limits?
$4,500 for self-only coverage and $9,000 for family coverage.
What is a Trump Account?
A tax-advantaged savings account for children, launched in July 2026. Employers can contribute up to $2,500 per employee per year tax-free.
Are employers still covering GLP-1s for weight loss?
Fewer are. Coverage dropped from 72% to 60% of employers in the past year, and many who still cover them are adding stricter requirements.
What is the dependent care FSA limit for 2027?
$7,500. The limit rose from $5,000 starting in 2026.