Health Insurance in France: why employers should expect higher premiums in 2027
French employers should prepare for another increase in Health Insurance premiums in 2027. New rules published in August 2026 will move part of the cost of dental care, medicines and medical devices from Social Security to complementary insurers from January 1, 2027. Insurers have started to announce their renewal terms, and they point to high single digit increases.
French employers should prepare for another increase in Health Insurance premiums in 2027. New rules published in August 2026 will move part of the cost of dental care, medicines and medical devices from Social Security to complementary insurers from January 1, 2027. Insurers have started to announce their renewal terms, and they point to high single digit increases.
The cost of healthcare is shifting
France's healthcare system is under sustained financial pressure. Social Security still finances the large majority of healthcare expenditure, but the government is looking for ways to contain its deficit.
One consequence is a gradual change in who pays for what. When Social Security lowers its level of reimbursement, complementary Health Insurance is generally expected to cover the difference.
For employers, this is not an abstract debate. Companies are required to provide complementary Health Insurance to their employees and to finance at least 50% of the premium. What is transferred to complementary insurance eventually reaches the benefits budget.
Insurers are already paying more
The pressure on complementary insurers did not start this year. Figures published by DREES show that complementary health insurers paid 36.8 billion euros in benefits in 2024, an increase of 5.4% in one year. Their share of spending on healthcare and medical goods reached 12.8%, against 12.5% the year before.
These are the conditions in which insurers prepare their renewal terms: claims that keep rising, and a share of the bill that keeps growing.
New rules will shift more costs in 2027
Four decrees published in August 2026 increase the share of costs left to the patient, and therefore to complementary insurance, from January 1, 2027. Dental care, medical devices, medicines and patient transport are all concerned.
Dental care is the most visible. Social Security reimbursement on dental treatment and prostheses is expected to move from 60% to 50%. Care included in the 100% Santé baskets, care for patients with a recognised long-term condition and the most effective medicines are protected.
Estimates of the amount transferred range from 1.2 to 1.7 billion euros a year. In every scenario, this is a cost complementary insurers have to absorb, and one they will price into 2027 contracts.
Employees will barely notice, employers will
More than 95% of the French market is made up of what are known as responsible contracts. These plans benefit from a reduced insurance tax rate in exchange for a set of obligations. One of them is that the plan must cover at least the share left to the patient by Social Security on reimbursed care.
This is why the August decrees translate almost automatically into higher claims for insurers. Employees will generally continue to be reimbursed as they are today, because their plan is required to absorb the difference. The adjustment happens in the premium, not in the level of cover.
Other pressures are building at the same time
Hospital charges were increased during 2026, which means 2027 will be the first full year in which insurers carry their full cost. New treatments add further uncertainty, starting with GLP-1 medicines, now reimbursed in the treatment of severe obesity for a population far larger than the one initially targeted.
One variable remains open. An exceptional tax of 2.05% was applied to complementary health premiums for 2026. Whether it is renewed for 2027 is not settled, and if it is, it will come on top of the technical increases already announced.
What the market is announcing for 2027
Insurers have started to share their renewal policy with brokers. The announcements converge on a high single digit increase, most of them sitting between 7% and 9% on rates for group health plans.
These figures come before indexation on the French Social Security ceiling, which is the basis on which contributions are calculated in most group plans. The market assumption for 2027 is an increase of around 2%. When that ceiling rises, the premium expressed in euros rises with it, even when the rate itself does not change.
None of this means every employer will receive the same terms. Renewal conditions depend on the insurer, the claims experience of the group, its demographic profile and the benefits provided. Some contracts will come in below the market trend, others well above it.
What employers should do now
For a US company operating a subsidiary in France, a renewal letter is difficult to read without a detailed understanding of the local market. A higher premium is not in itself a reason to accept the terms as they stand, and not in itself a reason to change insurer either.
The useful questions are more specific. How much of the increase reflects the regulatory transfer, which affects every insurer in the same way, and how much reflects the claims experience of your own plan? Is the level of benefits still aligned with what your employees actually use? What would the market offer for the same population?
With 2027 renewals under way, now is the time to measure the impact on your benefits budget.
At KMH Benefits, we help international companies operating in France understand their Health Insurance costs, challenge renewal terms and find the right balance between compliance, employee protection and budget control.