Advocate Health sets $20 per hour minimum starting wage for 2027

Advocate Health announced it is investing an additional $1.24 billion in its workforce in 2027, setting a company-wide minimum starting wage of $20 per hour and expanding employee benefits.

The health system is allocating $846 million for compensation adjustments and another $390 million toward incremental benefits while covering the vast majority of projected health care cost increases for its workforce, without impacting their employees’ premiums.

Advocate Health leadership said employee dedication was key to maintaining patient care across the system’s medical network. Starting in January, the starting wage for employees will increase to $20 per hour, an increase from the 2026 baseline pay set at $18.85.

Under the updated starting pay rate, an employee working a 40-hour workweek will earn $26,520 more annually than a worker earning the federal minimum wage.

[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]

The increased wages will also include merit pay increases, incentive programs, pay range updates and structural wage adjustments, paid through the $846 million overall compensation allocation.

The $390 million incremental investment in benefits expands what Advocate Health pays for health coverage and retirement programs for its employees.

With employers nationally facing projected medical cost increases of about 9% in 2027, Advocate Health is allocating $138 million to absorb more than 90% of a projected $149 million increase in its plan costs.

TRENDING STORIES:

• Gunn, Safran back to creative work, former Marvel exec tapped to lead DC Studios
• Man accused of smashing his way into woman’s car, home
• Six Flags reports October ‘softer’ due to tragic death on Goliath, weather challenges

Under the 2027 health plan, deductibles, coinsurance, out-of-pocket maximums and most copays will remain unchanged.

Premium rates will stay flat for some employees while increases will be limited for others. Medical plan premiums will continue to be structured by income tier, ensuring employees earning $50,000 or less pay the lowest rates.

Nakesha Lopez, senior executive vice president and chief people and culture officer for Advocate Health, said the company was focusing on affordability and practical support for its staff. Part of that means premium rates for some employees will not change, while others will only have limited increases.

Advocate Health said its plan premiums will remain structured on an income-tier basis so that their least paid employees are paying the lowest rates.

“The benefits that matter most are the ones that make a real difference in people’s lives,” Lopez said. “We want our benefits to reflect what teammates need at different stages of their lives, while keeping affordability at the forefront and providing meaningful support for their health, families and financial futures.”

Next year’s health plan includes four weeks of fully paid parental leave, including pre- and post-leave support resources for child care planning, lactation guidance and other types of parental assistance in the child’s first year of life.

The company said that if both parents work for Advocate Health, each eligible employee will receive the full four-week leave benefit. The system is also expanding paid bereavement leave to five days while extending eligibility to cover more family relationships.

Advocate Health will maintain coverage for GLP-1 weight-loss medications for eligible employees, counter to broader employer trends scaling back coverage.

The medication coverage will be supported by the new Advocate Health Weight Management Program, which offers clinical guidance and health tools.

The organization will also provide no-cost mental health services for employees and household members, including virtual therapy, coaching, self-guided tools and family support.

In retirement benefits, Advocate Health is sustaining employer contributions of up to 6% of eligible pay.

The structure features a dollar-for-dollar match on up to 3% of pay, plus an automatic 3% contribution provided regardless of whether an employee makes personal contributions to the plan.

Educational assistance will be accessible to employees from their first day of employment, covering more than 1,300 eligible programs ranging from high school completion and English-language learning to doctoral degrees.

Staff can also receive tuition support, with a range of funding amounts based on employment status and education programs.

The organization also provides student loan repayment assistance of up to $21,000 over a lifetime for eligible full-time staff and $10,500 for part-time staff with qualifying loans.

To support retention, Advocate Health will continue operating its Teammate Success Coaching Program, which helps workers facing transportation, housing, child care and personal finances challenges.

The coaching initiative has recorded a six-month retention rate of approximately 90% among participants. Advocate Health is also expanding career mobility through apprenticeships, internships, youth exploration programs and community partnerships.

Lopez said that workforce stability depends on providing clear career paths and long-term support for health system employees.

“We want teammates to be able to build long, fulfilling careers with us,” Lopez said. “That means creating opportunities to learn and grow, removing barriers that can get in the way and opening more pathways into health care.”

Lopez said that when people are able to see a future with the company, it makes them more likely to stay and develop their careers there, making a difference for patients and the communities the health system serves.

The minimum wage adjustment to $20 per hour, health care cost coverage structure and expanded benefit offerings are scheduled to take effect across Advocate Health for the 2027 plan year.

[SIGN UP: WSB-TV Daily Headlines Newsletter]