As we have shared, both Lehigh and our employees will be paying more for medical insurance coverage in 2027. Here is a look at the growth in monthly premium costs from 2025 through the upcoming 2027 plan year:
| University Contribution (Lehigh’s Share) | 2025 | 2026 | 2027 |
| Individual | $692 | $762 | $ 868 |
| Employee + Spouse/ Partner | $1,424 | $1,568 | $1,786 |
| Employee + Child(ren) | $1,295 | $1,425 | $1,624 |
| Employee + Family | $2,056 | $2,262 | $2,578 |
| Employee Premiums (Your Share) | HDHP | PPO | HMO | ||||||
2025 | 2026 | 2027 | 2025 | 2026 | 2027 | 2025 | 2026 | 2027 | |
| Individual | $41 | $45 | $47 | $274 | $301 | $316 | $132 | $145 | $152 |
| EE + Spouse/Partner | $156 | $172 | $181 | $678 | $746 | $783 | $371 | $409 | $429 |
| EE + Child(ren) | $132 | $145 | $152 | $603 | $664 | $697 | $326 | $358 | $376 |
| EE + Family | $229 | $252 | $265 | $983 | $1,082 | $1,136 | $537 | $592 | $622 |
Monthly premium costs have increased across the board in the past few years, with Lehigh’s share increasing about 25% from 2025 to 2027. The increase in the employee share in the same period is about 15%, or about 5% per year.
Are Costs Going Up Everywhere or Just at Lehigh?
Let’s look at the broader context. It won’t surprise anyone to learn that healthcare costs have been increasing across the board. Key drivers are prescription drug costs, which make up 25% of healthcare costs overall nationally, as well as the increase in the cost of labor for hospitals in a difficult labor market, general inflation, and increases in treatments for complex medical conditions. These cost drivers lead to increased premiums as well as the other plan design changes that you sometimes see, such as increased deductibles and copays.
The 2026 Milliman Medical Index indicates the cost of healthcare has increased 7.9 percent between 2025 and 2026. This surpasses the national inflation rate and it’s expected to continue on that trend line. The Business Group on Health (BHG) puts the anticipated median increase in costs for 2027 at 9.2%. A third company that studies this market suggests the increase could be as high as 9.5%. Regardless of the source, expectations are that above-inflation increases will continue in 2027.
How Do We Measure Up?
Lehigh offers three medical plan options and four different levels of coverage within these options. Because of this complexity, we decided to look at some of the averages of two key out-of-pocket costs, premiums and deductibles, to show how Lehigh’s offerings match up against national averages. Note that our comparisons are based on 2025, the most recent national data available from our source, the Kaiser Family Foundation.
Deductibles
Nationally: In 2025, the average individual deductible among workers whose plans had a general deductible was $1,886.
Lehigh: The average in-network individual deductible among our three plans in 2025 was $900. While we don’t have national 2027 figures, we know that in 2027, Lehigh’s average in-network single deductible will be $1,100, which is still below the 2025 national average.
Premiums
Nationally: In 2025, American workers in employer-sponsored medical insurance plans contributed an average of $6,850 annually toward family premiums through payroll deductions.
Lehigh: In 2025, the average annual premium among our three plans for a family (Employee+ Family) was $6,996, just slightly above the national average. While we don’t have national 2027 figures, we know that in 2027, Lehigh’s average annual family premium will be $8,092, representing a 5 percent increase over Lehigh’s 2026 average annual family premium. This is well below the expected 9 percent increase in the cost of healthcare in the coming year.
A Partnership of Caring
When Lehigh first offered medical insurance benefits in the 1940s, we began a partnership of caring between the university and our employees. The incredible advances in healthcare in the 80+ years since have led to longer, healthier, higher quality lives for many. In more recent decades, the cost of providing care has risen at rates that are well beyond the rate of inflation. This is true everywhere in the United States and it affects all employers. It is especially challenging for not for profit institutions like Lehigh as we carefully consider the impact on our ability to accomplish our mission.
We are committed to maintaining our position as an employer who offers medical benefits that are available at a variety of premium levels and plan designs that remain within the national averages determined by industry experts.
In recognition of the university’s continued partnership of caring with its employees, Provost Nathan Urban and Senior Vice President of Finance and Administration Chris Cook will establish a Lehigh Medical Advisory Group. Composed of an equal number of faculty and staff serving three-year terms, the group’s membership will be formed through recommendations from College Deans, Faculty Senate, the Employee Relations Advisory Committee and the Strategic Administration Professionals Group.
The committee will meet several times a year to review updates on health insurance costs and medical benefits, as well as offer feedback on overall decisions regarding cost and benefit adjustments. The group serves in an advisory role, and final decisions rest with the university. The committee’s structure and charge will be completed by the end of the semester with meetings beginning in early 2027.