Major health insurers are projecting premium increases averaging 12% for 2027 plan year, driven primarily by the soaring cost of specialty pharmaceuticals and GLP-1 weight loss medications. The increase would be the largest in a decade.
UnitedHealth Group, Cigna, and Humana have all filed preliminary rate requests with state insurance regulators reflecting double-digit increases. The primary cost drivers include Ozempic-class medications, gene therapies, and rising hospital facility fees.
GLP-1 medications alone are adding an estimated 2-3% to premium costs as demand explodes. An estimated 15 million Americans now take some form of GLP-1 medication, with annual per-patient costs exceeding $12,000 for brand-name formulations.
Employers are bracing for the impact on group health plans. A recent survey by Mercer found that 65% of large employers plan to pass at least half of the increase to employees through higher deductibles and copays.
Consumer advocates are calling for regulatory intervention, including expanded use of drug price negotiation under the Inflation Reduction Act and stricter review of hospital pricing practices.
