What’s new for open enrollment 2027?

The projections for 2027 renewal rates are already drawing attention with rumors of yet another year of near-double-digit increases. As agents and employers alike anticipate the impact on open enrollment 2027, here is a breakdown of three recent headlines to watch and how to navigate them.

PwC reported that health plans are projecting “the highest medical cost trend in nearly two decades,” as commercial healthcare costs are expected to rise to 9% in this coming year. Their annual Medical cost trend 2027: Behind the Numbers report — based on interviews with actuaries at 27 health plans, covering over 103 million members — put group medical costs at the highest in 17 years.

Why are medical costs going up? The report lists the following drivers:

The report’s authors make it clear that understanding what’s driving costs is only one hurdle. “The challenge now is not simply understanding what is driving healthcare costs higher, but whether health plans can deploy cost-of-care strategies quickly and effectively enough to slow the trajectory before affordability, coverage, and access come under greater strain across the healthcare system,” PwC notes.

ICHRA insight: This is your moment, as a broker, to shift from vendor to advisor. Yes, employers are looking for ways to manage cost increases; they’re also looking for a partner to help navigate their options. Even if an ICHRA is not suitable, consistently helping clients explore alternative funding options demonstrates your value as a strategic advisor and gives you a competitive advantage.

With the unsustainable costs of rising premiums setting the stage for decision-making, employers are looking to make changes for the 2027 open enrollment period (OEP). Mercer’s recent survey of 604 U.S. employers indicated that employers are exploring ways to shift costs or seeking alternative plans. Mercer reported nearly half (48%) of large employers are considering shifting more costs to employees, including raising deductibles or out-of-pocket maximums. And two-thirds are adjusting their contribution strategy. 

When it comes to offering an ICHRA as part of that strategy, small employers expressed the most interest (13%).

ICHRA insight: ICHRAs allow for an unprecedented level of plan diversity. An employer can’t randomly pick who gets an ICHRA and who gets a traditional group plan. They can, however, offer one class of employees ICHRA benefits and another class a traditional group plan. These segmentation strategies offer employers the option to choose who’s eligible for an ICHRA based on: 


| Reach out to an ICHRA expert to learn more about segmentation strategies.

The Employee Benefit Research Institute (EBRI) and Greenwald Research’s recent report on consumer engagement in healthcare flagged that provider networks were “the most important factor when choosing a health plan” for employees, ranking higher than premiums or any other plan feature.

Among survey respondents, 80% with traditional plans listed “a good network of physicians and hospitals” as very important, and 76% of respondents with high-deductible plans agreed.

ICHRA insight: ICHRAs eliminate network and carrier limitations. They offer solutions for geographically diverse and remote workforces offering plans in almost any location, making it easier to ensure employees have access to the provider networks they’re looking for. 

The 2027 open enrollment period is likely going to bring with it the fourth straight year of near-double-digit health benefit cost increases. At the same time, EBRI’s employee research suggests an increased demand for network access and plan diversity — which is likely to matter more as employers shift more costs. When considering the headlines that are breaking through as we approach open enrollment 2027, ICHRA plans provide a handful of benefits worth considering and sharing with your clients.

Open enrollment or open enrollment period (OEP) is the dedicated annual period for benefits enrollment. The term is typically used for medical and dental policies.

Open enrollment typically takes place between November 1 – January 15 for individual and ACA marketplaces and January 1 – March 31 for Medicare Advantage. For employer-sponsored plans, each organization chooses its own dates for annual benefits renewal.

Open enrollment means the selection and purchase of an individual or company’s health benefits policy.

An individual coverage health reimbursement arrangement (ICHRA) is an employer-funded, tax-free health benefit used to reimburse employees for individual health insurance premiums and other qualified medical expenses. With an ICHRA, the choice and responsibility shift from employer to employee — the employer sets a predetermined contribution amount and the employee selects their network and health benefits policy.