Group health plan costs are anticipated to increase by 9% in 2027, with individual plans not far behind at 8.5% according to a new analysis – Five Forces. Few Brakes. What 2027 Means For Healthcare Costs. While these costs have been increasing for the past five years, this projected increase represents the highest annual rate of cost increase in nearly two decades.

The analysts identified five primary factors expected to drive costs higher: artificial intelligence (AI)-enabled documentation and coding tools, increased reimbursement pressure, pharmacy cost trends, behavioral health utilization, and higher out-of-network reimbursements. These factors were identified through a survey of actuaries.

AI tools used for clinical documentation emerged as a “top three” driver of cost – attributable…