Health insurance costs expected to surge in 2027: How to save money

Well, you could get a raise next year and still end up with less money in your pocket. Employers expect health care costs to jump more than 8% in 2027, and workers could be paying more for coverage. So as open enrollment gets underway, how do you keep those costs from eating up your paycheck? Business analyst Mark Lee joins us with what to look out for so you can choose the right plan for you and your family. And it's always good to see you, Mark. Thanks for joining us. Thank you. So you get a pay raise, and you think, wow, this is great, more money in my pocket. But then with healthcare costs going up, Coming up, it actually zaps the raise. Yeah. What's going on here? Yeah, it definitely is zapping the raise. You're getting a 3% increase, and your healthcare costs are going up 8% to 10%. It's like, whoa, what's going on? So here's the bottom line. The bottom line is that the costs continue to increase in terms of healthcare. And it's really started back at the end of 25. We had the subsidies, what the government was offering. We're not extended, and as a result, the premiums jumped up significantly. And as we move into 2026 this year, for example, the costs are continuing to increase due to inflation. You talked about GLP-1 earlier. They have these new medications out there. And quite frankly, the cost to go to a doctor has increased as well. So all these are the perfect storm in terms of raising your premiums for next year. What is it that people can do to choose the right plan? Open enrollment is an important time to say, all right, let me figure out what I do need and what I don't need. What are you thinking? You have to compare plans. Don't just compare the cost, right? Look at the deductibles, the premiums, the things of that sort. So look at the total package. And don't necessarily take the cheapest plan that's out there. You want to make sure that your doctor's in the plan. You want to make sure that your medications are covered, for example, as well. And the point of personal inference here, for example, I just got a letter recently where my medical cost and my prescription cost is going to go up 40%. 40%? 40% next year. I just got the letter last week, and I looked at it, and I was stunned. So the point is continue to do your research and just, you know, go online and talk to other friends or family and see what the best deal is for you. Why is it so important to make sure to do your homework because you're saying don't just go for the cheapest plan with people paying 475 for gas, they're kind of thinking, well, man, I got to cut somewhere and they think to cut there, but that could be a really bad move economically and also for your health. In the future? Absolutely. I mean, thinking about it, healthcare is another part of that equation that you and I have talked about in the past, specifically as it relates to cost of living and affordability. So people still got to make a choice. Do I fill up my gas tank, although the gas prices have come down? But you also need to take care of yourself. My concern is that as these costs continue to increase, more and more people are gonna say, I'm not necessarily sure I need to go to a doctor. I'm willing to take that chance. That's not the best decision. No, and so you got to be judicious with how you choose the health plan during open enrollment, but it is going to cost you more. There are tips that people can give out there like where else to save. Are there other areas that people should be looking at to say, look, I got to pay more, 8% more for health care, 40% more. This is where you got to have- Where do you cut? You look at your budget. All right, look at your revenues, look at the dollars that are coming in every single month, and look at your expenses, what's going out. Do you need to go out every night for dinner, right? You may want to consider your restaurant cost, your other cost, your disposable income, and figure out where you need to reallocate those dollars as well. So obviously sit down, go through those budget, your budget, go through the kitchen table issues that you and I have discussed in the past, and reallocate the resources appropriately. And again, don't forget to shop around. Don't forget to shop around. Yeah, so to bring that 8%... You know, adjustment in, maybe you cut 8% somewhere else. Maybe that's a $5 cup of coffee every morning that you're picking up at the drive-thru. You know, you run that for over 30 days. You figure out how much money that is. That's a lot of money. That's a lot of money. Adds up pretty quickly, especially if you're going into the holiday season. But the bottom line is, be judicious and shop around. Yeah, that's good advice. Mark Lee, business analyst. Great to have you with us here tonight. Thank you. Thanks for your time.