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Employers warn healthcare costs could rise 11.1% in 2027 without changes
A WTW preview found nearly half of employers expect major plan shifts in the next three years, but 56% say they are unwilling to take disruptive actions to close the projected 2027 gap.
Employers are facing an 11.1% projected increase in healthcare costs for 2027 unless they take corrective action, according to a WTW survey preview highlighted by CFO Dive.
The report says plan redesigns could reduce that growth to 9.7%, but many employers are reluctant to implement the structural changes needed to make the difference. Nearly half of respondents, 49%, expect significant healthcare program changes within the next three years, while 56% said they are unwilling to take disruptive steps to realize savings.
Coverage decisions around GLP-1 medications have become a flashpoint. Starbucks confirmed it will stop covering GLP-1s for weight loss starting October, while continuing coverage for other indications including diabetes, a shift that reflects broader tightening as GLP-1s for weight loss rose to 11.4% of total annual claims in 2025 from 6.9% in 2023, based on data cited from the International Foundation of Employee Benefit Plans.
Aon’s analysis, also cited in the coverage, projects employer healthcare cost growth of 8.8% for 2026 and 9.5% for 2027, with average per employee costs rising above $19,000. Aon also estimated that employees paid an average of $5,297 for healthcare in 2026, while out of pocket expenses increased 10.2% year over year, and the report ties the outlook to renewed pressure in the 2027 renewal cycle.