Health Benefit Costs Projected to Rise 8.2% in 2027
Middle-market employers budgeting for 2027 should expect higher health benefit costs and review plan design options with their brokers.
Updated on Nov. 6, 2026 in Healthcare
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Alliant Insurance Services, headquartered in Irvine, California, hired Tom Mather as vice president in its Employee Benefits Group, a move the firm announced Thursday, November 5, 2026. The hire comes as Marsh projects health benefit costs per employee will rise 8.2% on average in 2027, which matters for California employers budgeting next year's benefits.
Why it matters
Employers face rising health benefit costs and are prioritizing cost control, so brokerages are adding benefits strategy talent to serve middle-market clients. Alliant's regional restructuring of the group reflects the same pressure to deliver faster, more locally tailored support.
Marsh projects an 8.2% average rise in health benefit cost per employee for 2027, down from an 11% increase without cost-reduction measures and up from 6.7% in 2026. Per the Business Group on Health, 59% of surveyed employers plan cost-reduction steps for 2027, and 54% rank cost reduction as their top benefits priority, up from 38% in 2025.
The players
Alliant Insurance Services
Irvine, California-based insurance brokerage that advises employers on benefits, risk, and insurance placement.
Marsh
Global insurance broker and consultancy whose annual benefits cost projections are widely used by employers to set budgets.
Business Group on Health
Employer coalition that runs an annual survey of large employers' health benefit cost expectations and strategies.
The details
Brokers such as Alliant earn much of their business by designing benefit plans and negotiating with carriers on behalf of employers. Mather's background covers strategic benefits planning, self-funded plan design, and financial analysis, and he will partner with middle-market employers to build customized strategies. Alliant's reorganization of its employee benefits group into three regions, with new staff joining in June and August, is intended to speed growth and make client support more locally tailored.
Timeline
June 2026: Alliant reorganized its Employee Benefits Group into three regions and Yana Jones joined the group.
August 2026: Elsje Johnson joined the Employee Benefits Group.
Thursday, November 5, 2026: Alliant announced Tom Mather's appointment as vice president.
2027: Marsh projects an 8.2% rise in health benefit costs per employee.
Market Landscape
Projected 2027 cost increases of 8.2% from Marsh and 9.2% from the Business Group on Health continue a pattern of rising health benefit costs above 2026's 6.7%. Brokerages such as Alliant are responding by adding benefits strategy specialists and restructuring regionally to compete for middle-market employer accounts.
Employers budgeting for 2027 should plan for health benefit cost increases in the 8% to 9% range and ask their brokers which plan design changes could reduce them. Finance and HR leaders should review renewal assumptions with qualified benefits advisors and accountants before committing budgets.
The takeaway
Health benefit cost growth is the operating constraint to plan around for 2027, with 59% of employers already preparing cost-reduction steps. Track renewal quotes against Marsh's 8.2% projection and review plan design options with a qualified benefits advisor.
Further reading
For more on how employers are managing these pressures, explore our Healthcare coverage.
Source note: This article includes information reported by Insurance Business.
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