US employer health benefit costs are projected to rise 8.2% per employee in 2027, marking the biggest increase since 2003, according to new research from Marsh. 

Small businesses are taking a range of measures to prepare for higher costs, with many facing increasing pressure on cash flow.

How the biggest health insurance cost increase since 2003 could affect SMBs

Preliminary findings from Marsh’s 2026 National Survey of Employer-Sponsored Health Plans, based on responses from more than 1,800 US employers, project that total health benefit costs will rise by an average of 8.2% per employee in 2027. This will be the highest increase since 2003.

That figure already takes into account measures employers plan to introduce to reduce costs. Without those changes, employers surveyed by Marsh expect the cost of their current plans to rise by an average of 11%.

For small and medium-sized businesses (SMBs), higher healthcare costs could put additional pressure on already tight operating budgets and make planning for employee expenses more difficult. 

Employers are already looking for ways to respond. Marsh found that 59% plan to make cost-cutting changes to their health benefits in 2027, including changes to plan design.

These increases can be particularly challenging for smaller businesses, which generally have less capacity than larger employers to spread healthcare costs across a larger workforce or self-insure.

Rising costs can add to cash flow pressure

Health benefits are only one part of the cost of employing a team. While health reimbursement arrangements can help some SMBs manage employee healthcare expenses, businesses are also dealing with higher wages and other day-to-day operating costs.

For many small businesses, protecting cash flow is becoming just as important as growing revenue. When several expenses rise at the same time, maintaining enough working capital to cover payroll, suppliers, inventory, and other obligations can become more difficult.

Planning ahead for high employee benefit costs can help businesses understand how much working capital they’ll need and identify potential cash flow gaps before they become urgent.

How Bizcap can support your business

When operating costs rise or expenses arrive before revenue, access to additional working capital can give a business more flexibility to manage the timing gap.

Bizcap provides fast, flexible business funding that can help eligible businesses manage short-term cash flow pressures and access additional working capital when unexpected costs arise. Options are designed for different cashflow needs:

  • Line of Capital (LOC): Access working capital when you need it, draw what you need, and restore available capital as you pay.
  • LOC Ultra: Designed for businesses that draw and pay capital frequently, with lower financing costs for faster payments.
  • Revenue Based Financing (RBF): Access capital upfront in exchange for the purchase of future receivables, with daily or weekly payments.

With a simple five-minute application and approvals in as little as three hours, eligible businesses can access funding quickly when cash flow is tight or additional capital is needed.

Apply today to explore whether Bizcap funding could support your business.