2027 Benefits Open Enrollment
Dear Faculty and Staff,
As Northwestern prepares to begin benefits open enrollment for 2027, we email today, as we do every year at this time, to provide you with information to help you make choices during the upcoming open enrollment period. We do so while acknowledging the significant changes that were implemented last year. With that experience in mind, in consultation with faculty and staff leadership, this year we prioritized keeping employee cost increases well below the national average, in part by increasing the share the University pays toward premiums.
We will maintain the same healthcare administrators, plan options (PPO, HSA Plus, HSA Essential or HMO), deductible costs, co-pays and out-of-pocket maximum amounts in 2027. We also will continue the behavioral health transition-of-care rates through 2027.
This information and the details below apply to benefits-eligible faculty and staff, except for postdocs, who will receive a separate communication.
The financial burden of this year’s industry-wide, double-digit surge in healthcare insurance cost remains a nationwide challenge to both employers and employees. As mentioned above, Northwestern has chosen to make its premium increase in 2027 less than the national average. In addition to the administrator changes made last year to mitigate cost increases, the University is taking additional measures this year to reduce the impact on employees by paying a greater proportion of your overall healthcare costs.
Northwestern will increase its contribution this year to pay 80% of the cost of premiums in 2027. Employees’ share of the premiums will decrease to 20%. Thus, on average, for every $5 of health insurance premium, the University will pay $4, and the employee will pay $1. This means that while the national average for 2027 health insurance premium increases will be approximately 11%, Northwestern faculty and staff in the PPO and High-Deductible Health Plans (HSA Plus or HSA Essential) will see an average premium increase of 4.3%. (The exact amount will depend on an individual employee’s salary band and coverage tier.)
And while the national average premium increase for HMOs is 16%, our HMO participants will see an average premium increase of 7.7%. (Again, the exact amount will depend on an individual employee’s salary band and coverage tier.) Northwestern’s premium increases contrast with some of our peer institutions that are implementing percentage increases closer to or above the national average, and in some cases adding spouse/family surcharges or increasing deductibles.
Over the past year we have asked for, and received, ongoing feedback from the community regarding last year’s changes to our community’s health plans. We have worked closely with individual participants who experienced challenges, and we have made every effort to resolve those issues. We will continue to monitor the performance of the plan administrators while also listening to our community to ensure a successful employee experience.
Northwestern’s benefits open enrollment for 2027 will take place from Oct. 26 through Nov. 13, 2026. You will receive a communication from Human Resources shortly with specific details.
Thank you for your continued feedback and engagement on these important benefits.