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Healthcare costs may increase by nearly 10% next year, according to the latest edition of the Business Group on Health’s annual survey of large U.S. employers, which BGH executives called a sign of the “unprecedented” environment that employee benefits teams face.
2025 marked the third consecutive year in which actual healthcare costs exceeded BGH members’ projections. Respondents included 127 employers representing 8.7 million covered U.S. individuals. Moreover, 2025’s year-over-year increase of 8.8% was the highest ever reported by BGH members.
“It’s clear that employers are at an inflection point,” Brenna Shebel, vice president at BGH, said during a press conference announcing the results on Tuesday.
The organization found that disease categories such as cancer, musculoskeletal and cardiovascular drove most of the trend — a finding consistent with previous editions of the survey — alongside increased prices for hospitals, outpatient facilities and pharmaceuticals. Pharmacy costs alone are expected to increase 12% in 2027 before plan design changes.
