Health care costs for employer-sponsored plans jumped again in 2025, and several independent surveys already point to another steep increase in 2027. KFF's 2025 Employer Health Benefits Survey put the average annual premium for family coverage at $26,993, up 6% from 2024, and single coverage at $9,325, up 5%, with an average deductible of $1,886 for single coverage.

A survey of 711 U.S. employers found that 51% of large companies, those with 500 or more employees, say they are likely or very likely to shift more cost onto workers in 2026 through higher deductibles or out-of-pocket maximums, up from 45% who said the same about the year before.

How much are employer health plan costs projected to rise in 2027?

Aon's Health Value Initiative, which tracks cost and benefit data for more than 1,100 U.S. employers, projects a 9.5% increase in employer health care costs for 2027 before any cost-cutting changes, putting the average cost above $19,000 per employee.

A preview of WTW's 2026 employer health care cost survey, covering 471 employers representing 7 million employees, found employers project gross health care costs will rise 11.1% in 2027 before plan changes, dropping to about 9.7% once planned redesigns are factored in.

As a current-year baseline, Mercer's National Survey of Employer-Sponsored Health Plans found the average cost per employee reached $17,496 in 2025, a 6.0% increase driven partly by a 9.4% jump in prescription drug spending among large employers, and projects total cost will climb another 6.7% in 2026, pushing the average above $18,500 per employee.

More employers are acting on that pressure: in Mercer's final results, 55% said they would make cost-cutting changes to their 2026 plans, such as raising deductibles or other cost-sharing provisions.

How much of this cost do workers nationwide already pay out of pocket?

Workers already cover part of this bill out of each paycheck: in 2025, employees contributed an average of $6,850 toward family premiums, 26% of the total, and $1,440 toward single coverage, 16% of the total, with employers paying the rest.

Aon's data shows a similar split once out-of-pocket costs are added in: the average employee is expected to pay $5,297 for health coverage in 2026, made up of $3,130 in premium deductions from paychecks and $2,167 in out-of-pocket costs such as deductibles, copays, and coinsurance, $388 more than in 2025.

Why are employers shifting more cost onto employees?

Employers who in recent years held off on raising deductibles because of a tight labor market are now more willing to do so, as cost growth outpaces both wage gains and general inflation.

In the 711-employer survey, 35% of large employers plan to add a non-traditional medical plan option in 2026, such as a variable copay plan with fixed, published copays that let workers pick lower-cost providers, and 61% are evaluating alternatives to a standard pharmacy benefit manager contract to get more clarity on drug pricing.

Aon points to rising use of health care services, more prevalent chronic conditions, a growing number of high-cost claims, and drug spending driven by specialty medications and GLP-1 therapies as the main cost drivers.

Prescription drugs are a recurring theme across these surveys: 36% of large firms in the KFF survey said drug prices contributed a great deal to their 2025 premium increases.

Why is GLP-1 drug coverage such a large factor in 2026 costs?

GLP-1 drugs prescribed for diabetes and obesity cost about $1,000 per month per patient before manufacturer rebates, and managing that cost is the leading pharmacy benefit priority among surveyed employers, with 77% rating it extremely or very important.

Only 44% of large employers cover GLP-1 drugs specifically approved for obesity, and some that added the coverage in recent years are reconsidering it given the cost and the number of employees who might qualify.

How can PepsiCo employees manage rising health care costs in 2027?

For 2027 plans, the IRS allows HSA contributions of up to $4,500 for self-only coverage or $9,000 for family coverage (up from $4,400 and $8,750 in 2026), plus a $1,000 catch-up for savers 55 and older, and a plan must carry a deductible of at least $1,750 self-only or $3,500 family and cap out-of-pocket spending at $8,700 self-only or $17,400 family to qualify as an HSA-eligible high-deductible plan.

Comparing a plan's new deductible and out-of-pocket maximum against last year's numbers, and checking whether an HSA-eligible option fits a household's expected health spending, are practical steps during open enrollment no matter which way premiums move.

What should PepsiCo employees nearing Medicare eligibility know about 2026 costs?

For employees approaching 65, the standard 2026 Medicare Part B premium is $202.90 a month, up from $185.00 in 2025, with a $283 annual deductible; weighing that cost against an employer plan's premium and deductible for the same coverage year is part of deciding when to move off employer coverage.

Premiums and deductibles are one side of the planning question; the other side is knowing exactly what PepsiCo offers today and how that coverage changes once employment ends.

What Does PepsiCo's Health Coverage Look Like Right Now?

PepsiCo employees have a couple of coverage changes worth checking before open enrollment arrives. The PepsiCo Employee Health Care Program, which covers medical, dental and vision for active employees, reported 120,519 active participants at the end of plan year 2025, down from 127,695 at the start of that year. PepsiCo's own retiree health plan has shrunk even further, falling to 10,847 participants by the end of plan year 2025 from 17,200 at the start of plan year 2021. That decline lines up with a reported move of retirees over age 65, effective January 1, 2025, onto a private Medicare marketplace model, where PepsiCo pays a subsidy toward individually purchased Medicare Advantage, Medicare Supplement or Part D coverage rather than continuing group retiree health. Compare that subsidy and your own plan's new numbers against what you paid this year before assuming nothing has changed for 2027.