Health Plan Costs Projected To Jump 9% In 2027

Health plan costs for group plans are projected to increase by 9.0% in 2027, and by 8.5% for individual plans, according to a recent analysis. Health plan costs have been increasing for the past five years, and the projected increase represents the highest annual cost growth trend in 17 years.

PwC identified five primary factors expected to drive projected cost growth:

Artificial intelligence-enabled documentation and coding tools that may contribute to more intensive clinical documentation and coding

Elevated provider organization reimbursement pressure

Pharmacy cost trends, which are outpacing the overall medical cost trend

Behavioral health utilization, which . . .