(WBEN) - Healthcare costs have been rising for years, and this year is proving to be no different.
Early outlooks on employer health care costs project a 9.5% increase according to benefits consultant Aon, marking the fourth straight year of nearly double-digit increases.
"The initial numbers are coming out and we're seeing for employer sponsored plans a 9 - 9.5% increase from last year," said Dan LaBroad, CEO of Ovation Health & Life Services, which helps employers navigate the healthcare landscape. "On the marketplace for the ACA right now the numbers have come in and the median is about 15% across the board in all 50 states."
The Aon report says workers this year are expected to pay an average of $5,297 for health coverage including both payroll contributions and out of pocket spending. That's $388 more than in 2025.
Why are we seeing such a sustained period of significant healthcare cost increases?
"Drug costs are definitely a big portion of that," LaBroad said. "Not just GLP-1s, but there's a lot of specialty medications coming out for a lot of conditions and those drugs are not cheap."
"I jokingly tell people all the time, but it's the truth; if you see a drug on TV, you can't afford it."
If there is any good news, Aon says that across all industries, employee contribution increases remained below employer and total plan cost increases, meaning many employers continue to absorb a significant share of rising costs.
