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WTW projects 11.1% healthcare cost jump in 2027 without corrective action
WTW says plan redesigns could cut the 2027 increase to 9.7%, but 56% of employers say they are unwilling to take disruptive measures to reach that level.
Employers are projected to face an 11.1% increase in healthcare costs in 2027 if they take no corrective action, the steepest projected single-year rise in nearly two decades, according to a WTW preview of its 2026 Best Practices in Healthcare Survey, as covered by CFO Dive.
WTW said plan redesigns could reduce the figure to 9.7%, but the survey found most employers are unwilling or unready to make the structural changes needed to get there. The survey polled 471 employers, ranging from 100 to more than 25,000 workers, representing 7 million employees, and it was conducted between June 22 and August 7, 2026, with full results due in September.
Nearly half of respondents, 49%, expect significant changes to their healthcare programs within the next three years, up from 34% in the prior year. But just 56% said they are unwilling to take disruptive actions, which WTW frames to include tools such as self-funding transitions, reference-based pricing, direct contracting, and pharmacy carve-outs.
The outlook also aligns with Aon’s separate analysis, which projects a 9.5% increase in employer healthcare costs for 2027 based on data from more than 1,100 US employers representing $135 billion in health spend, pushing average per-employee costs above $19,000. Both firms point to continued near double-digit growth, with Aon citing 8.3% employer healthcare cost growth in 2026, after 8.8% in 2025, versus 3.7% in 2022.