Penn State Faculty Will Face Higher Insurance Costs in 2027
Staff and faculty at Penn State will see monthly health insurance premiums rise next year as medical costs increase.
Updated on Sept. 21, 2026 in Insurance
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Penn State will increase monthly health insurance premiums for faculty and staff in 2027. These adjustments arrive as the university manages a projected 20% rise in medical and prescription drug expenses.
Why it matters
The university is adjusting premiums to keep pace with rising healthcare costs, which are climbing nationwide. Despite the price shift, the university will continue to cover 75% of health insurance costs, maintaining the existing cost-sharing structure for employees.
Monthly premiums will rise between $4.25 and $165 in 2027. For example, an employee earning $75,000 on the Lion Traditional family plan will face an additional $61.88 per month.
The players
Penn State
A major public research university that acts as the primary employer and healthcare plan sponsor for thousands of Pennsylvania staff and faculty.
The details
The increase in premiums is driven by a 20% jump in medical and prescription drug costs expected in 2027. Penn State will maintain its 25% employee contribution rate, meaning workers absorb a portion of these rising total costs. While the dollar amount varies by plan and base salary, benefits themselves remain unchanged.
Timeline
2027: Health insurance premiums will increase for staff and faculty.
Nov. 2-13: Employees participate in the benefits open enrollment period.
Money Landscape
This premium adjustment follows the broader national trend of increasing healthcare expenditures. The university is maintaining its current 75% cost-sharing ratio to manage these upward pressures on benefit budgets.
Review your expected monthly payroll deduction increases during the upcoming November open enrollment window. Consider discussing your specific plan options and budget impact with a qualified financial professional.
The takeaway
While benefit coverage remains unchanged, households should prepare for higher monthly payroll deductions starting in 2027. Review your total compensation and benefits package during the open enrollment period from Nov. 2-13 to ensure your plan selection remains the best fit for your budget.
Further reading
For more information on managing healthcare expenses and plan selections, visit Insurance.
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