--- title: 2027 Healthcare Costs Projected to Rise 9% description: PwC projects healthcare costs will rise 9% in 2027, underscoring the need for proactive plan design and cost management. image: https://blog.nisbenefits.com/hubfs/blog-headers/health-costs-projected-27-b.jpg --- ![Abstract concept of business growth and future goals](https://blog.nisbenefits.com/hubfs/blog-headers/health-costs-projected-27-b.jpg) # 2027 Healthcare Costs Projected to Rise 9% - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - 2027 Healthcare Costs Projected to Rise 9% [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 06/19/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [0 Comments ](https://blog.nisbenefits.com/2027-healthcare-costs-projected-to-rise#postComment) 1 Minutes PwC’s annual medical trend report projects commercial healthcare costs will rise 9% in 2027, the highest increase in 17 years and up from 8.5% in recent years. The report, based on input from actuaries at 27 U.S. health plans covering more than 111 million members, cites growing use of AI billing tools among providers as one factor driving this continued period of elevated cost growth. For 2027, group medical costs are projected to rise 9%, with the individual market at 8.5%. PwC identifies these top five cost drivers: - **AI-powered documentation and coding tools** help providers capture more billable detail without increasing care intensity, and nearly 70% of surveyed health plans rank this among the top three drivers of rising healthcare costs. - **Provider reimbursement pressure** remains high as inflation drives up provider costs and market consolidation reduces alternatives. - **Pharmacy costs continue to outpace overall medical costs**, driven by high-cost specialty drugs and growing use of GLP-1 therapies. - **Behavioral health costs are rising faster than overall medical costs**, with utilization up 62% from 2018 to 2024. - The **No Surprises Act’s Independent Dispute Resolution arbitration process** is now a lasting cost driver, with 2.6 million cases in 2025 and providers winning 88% of disputes. Historical cost deflators like biosimilars, generics, and site-of-care optimization are now baked into the baseline. They help, but they are not enough to offset rising costs, which means real savings must come from active cost-of-care strategies such as payment integrity, utilization and pharmacy management, reimbursement strategy, and targeted care management. Federal policy uncertainty is another wild card. Potential shifts in Medicaid and ACA marketplace funding could slow spending over time, prompting earlier adjustments from hospitals, health plans, and drug manufacturers. For a deeper dive, see PwC’s [Behind the Numbers 2027](https://www.pwc.com/us/en/industries/health-industries/library/assets/pwc-behind-the-numbers-2027.pdf) report.   ## **Employer Takeaway** For employers, a 9% cost trend calls for a proactive benefits strategy. Now is the time to strengthen plan design such as high-performance networks, centers of excellence, pharmacy carve-outs, and tighter utilization management before AI-driven coding, rising behavioral health use, and potential Medicaid cost-shifting further limit their options. Download the [bulletin](https://blog.nisbenefits.com/hubfs/blog-supporting-docs/bulletin-pwc-healthcare-cost-trend-increase-2027.pdf) for more details. [![5 ways to reduce health care costs](https://no-cache.hubspot.com/cta/default/3325505/64c4cab8-7a0d-4638-843d-159c07715082.png)](https://cta-redirect.hubspot.com/cta/redirect/3325505/64c4cab8-7a0d-4638-843d-159c07715082) --- #### Tag: [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) #### Share: - [Follow us on Facebook ](http://www.facebook.com/share.php?u=https://blog.nisbenefits.com/2027-healthcare-costs-projected-to-rise) - [Follow us on Twitter ](https://twitter.com/intent/tweet?url=https://blog.nisbenefits.com/2027-healthcare-costs-projected-to-rise&text=2027%20Healthcare%20Costs%20Projected%20to%20Rise%209%) - [Follow us on Linkedin ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.nisbenefits.com/2027-healthcare-costs-projected-to-rise) - [Follow us on Pinterest ](http://pinterest.com/pin/create/button/?url=https://blog.nisbenefits.com/2027-healthcare-costs-projected-to-rise&text=2027%20Healthcare%20Costs%20Projected%20to%20Rise%209%description=PwC’s%20annual%20medical%20trend%20report%20projects%20commercial%20healthcare%20costs%20will%20rise%209%%20in%202027,%20the%20highest%20increase%20in%2017%20years%20and%20up%20from%208.5%%20in%20recent%20years.[...]&media=https://3325505.fs1.hubspotusercontent-na1.net/hubfs/3325505/blog-headers/health-costs-projected-27-b.jpg) --- [ #### Final IDR Rule: Key Takeaways ##### Previous Post ](https://blog.nisbenefits.com/final-idr-rule) [#### Employer Contribution Allocation: A Strategic Benefits Opportunity ##### Next Post ](https://blog.nisbenefits.com/employer-contribution-allocation-strategic-benefits-opportunity) ### Leave a Reply This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### Category - [Legislative News (1149)](https://blog.nisbenefits.com/topic/aca-other-legislative-news) - [Health Insurance Solutions (504)](https://blog.nisbenefits.com/topic/health-insurance-solutions) - [COVID-19 (209)](https://blog.nisbenefits.com/topic/covid-19) - [Ancillary Benefits (175)](https://blog.nisbenefits.com/topic/ancillary-benefits) - [Mental Health (122)](https://blog.nisbenefits.com/topic/mental-health) ### Popular Posts [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 02/16/2024 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [ Understanding Embedded vs. Nonembedded Deductibles ](https://blog.nisbenefits.com/understanding-embedded-nonembedded-deductibles) [ Erin Woulfe ](https://blog.nisbenefits.com/author/erin-woulfe) 02/09/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ IRS Releases 2027 Health Plan Cost-sharing Limits ](https://blog.nisbenefits.com/2027-health-plan-cost-sharing-limits) [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 02/17/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ 4 Employee Wellness Trends You Can’t Ignore in 2026 ](https://blog.nisbenefits.com/2026-employee-wellness-trends) [ Dina Lubben ](https://blog.nisbenefits.com/author/dina-lubben) 11/14/2025 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ Trump Administration Unveils Plan to Make GLP-1 Drugs Affordable ](https://blog.nisbenefits.com/trump-administration-plan-glp1-drugs-affordable) --- ## Related Posts [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 07 July, 2026 #### [New CMS Report: Healthcare Spending Trends Through 2034](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034) New projections from the U.S. Centers for Medicare and Medicaid Services (CMS) Office of the… [Read More](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034) [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner), [ Mental Health](https://blog.nisbenefits.com/topic/mental-health) [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 06 July, 2026 #### [New HHS Rule Expands Catastrophic Coverage Access](https://blog.nisbenefits.com/new-hhs-rule-expands-catastrophic-coverage-access) The U.S. Department of Health and Human Services’ (HHS) Notice of Benefit and Payment Parameters… [Read More](https://blog.nisbenefits.com/new-hhs-rule-expands-catastrophic-coverage-access) [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ Mari Wagner ](https://blog.nisbenefits.com/author/mari-wagner) 25 June, 2026 #### [Federal Court Blocks Key ACA Exchange Restrictions](https://blog.nisbenefits.com/federal-court-blocks-key-aca-exchange-restrictions) A recent federal court ruling blocked stricter ACA Marketplace eligibility and enrollment… [Read More](https://blog.nisbenefits.com/federal-court-blocks-key-aca-exchange-restrictions)