U.S. employer healthcare costs to rise 11.1% in 2027
Phoenix, AZ – As U.S. employer healthcare costs are projected to see their steepest single-year growth in over two decades, beginning in 2027, Phoenix-based employee benefits brokerage The Benefit Doctor is urging businesses to reassess their health plans before the next cost cycle.
According to a survey from Willis Towers Watson (WTW), which was reported in the Wall Street Journal, healthcare costs for employers are set to rise by 11.1% in 2027, the highest annual increase in more than two decades. This marks the fifth consecutive year of escalating costs. In 2026, employees are expected to spend an average of $5,297 on healthcare, a $388 increase from the previous year.
The sharp rise in healthcare costs, driven by factors such as expensive cancer treatments, hospital price hikes fueled by AI-assisted billing, and the rapid adoption of GLP-1 weight-loss drugs, is causing financial strain for employers. This pressure has forced healthcare benefit decisions to move from the human resources department to the C-suite, with chief financial officers, CEOs, and boards now heavily involved in benefits planning.
Zak Harlow, the Founder and CEO of The Benefit Doctor, emphasizes that the sustained rise in costs goes beyond simple premium hikes. He asserts that the firm’s proprietary Cure the Pain™ Framework, which focuses on year-round data-driven benefit strategies, is critical for addressing the root of the issue. "Employers who haven't fundamentally changed their approach to plan design are about to face these projections head-on," Harlow stated.
Harlow further explains, "If your entire benefits strategy starts when the carrier hands you a renewal, you don't have a strategy. You have a reaction. When healthcare is increasing at close to double digits, moving the deductible around and asking employees to pay more isn't enough. Employers need time to diagnose what is driving the cost and evaluate every available option."
The Benefit Doctor, established in 2020, serves businesses across the United States with licensed professionals representing 38 states. As an independent benefits firm, The Benefit Doctor provides small and mid-sized employers with proactive, data-driven benefit strategies that have historically been reserved for larger corporations.
For business owners with 20 or more employees who want to review their benefits structure ahead of the 2027 cost cycle, The Benefit Doctor offers consultations. Interested parties can schedule a consultation at TheBenefitDoctor.com.