Open Enrollment
At Covestro, our Total Rewards philosophy is simple: we are committed to providing competitive, meaningful benefits that help attract, support, and retain great people — and to being transparent with you about the decisions we make. Your benefits are a significant part of that commitment — and we want to be open with you about what's changing for 2027 and why.
Healthcare costs continue to rise across the U.S., with medical inflation running at approximately 9% annually. To put this in perspective, our total medical and pharmacy costs have grown by nearly $9 million over the last five years — and in 2026 alone, costs are running more than 12% higher than the prior year. We are sharing this with you because we believe you deserve to understand the full picture — not just the outcome.
How Covestro is Protecting Your Benefits
Our total projected cost for 2027 is nearly $59 million, with Covestro absorbing approximately $49 million (roughly 83% of the total cost) so that your share of the cost remains manageable. Despite these increases, your out-of-pocket costs for 2027 remain below industry benchmarks. As we look ahead to 2028, our goal is to maintain that competitive positioning while ensuring the long-term sustainability of our programs.What's Changing in 2027
Although Covestro will absorb the majority of the plan cost increase for 2027, there will be premium increases for all plans.- Medical premiums will increase by 6.5% per pay period
- Dental premiums will increase by 4.3%
- Vision premiums remain unchanged for 2027
- There will be no change to the spousal surcharge for 2027
We encourage you to review the 2027 Benefits Guide carefully to understand how these changes apply to your specific coverage. If you have questions about your individual plan options or costs, please reach out to HR — we are here to help.
Looking Ahead to 2028
We want to be straightforward with you: the current pace of healthcare cost growth is not sustainable long-term. Continuing to absorb multi-million dollar increases each year places pressure on the organization.
That's why the Compensation and Benefits Committee has directed our Total Rewards team to conduct a thorough review of our medical and prescription drug programs for the 2028 plan year. This review will look at all aspects of our health programs — including plan design, vendors, and cost-sharing — with changes expected effective January 2028. As always, we are committed to being transparent throughout this process and will keep you informed at every step.
Thank you for everything you contribute to Covestro.
Sincerely,
Samir Hifri
Chairman and President
Covestro LLC
Katherine McEvilly
Vice President and Head of Human Resources
Covestro LLC
