WTW 2026 Best Practices in Healthcare Survey: U.S. employer healthcare costs set to rise at fastest pace in more than two decades
Key Highlights
- ➤U.S. employer healthcare costs projected to rise 11.1% in 2027 before plan changes
- ➤Post-change healthcare costs still expected to rise 9.7%, highest rate since early 2000s
- ➤Pharmacy costs projected to increase 11.5% in 2026, up from 9% in 2025
- ➤49% of employers expect significant healthcare program changes within three years, up from 34%
- ➤84% of employers are planning or considering putting health plans or vendors out to bid by 2028
Expert Statements
Jeff Levin-Scherz, Population Health Leader, North America, WTW
“Pharmacy has moved from a line item to the center of the healthcare cost conversation.”
Jeff Levin-Scherz, Population Health Leader, North America, WTW
“GLP-1s, specialty drugs and gene therapies can change patients’ lives, but the costs of these advances are hard to sustain.”
Jeff Levin-Scherz, Population Health Leader, North America, WTW
“Removing coverage outright tends to fall hardest on the employees with the most to gain.”
Jeff Levin-Scherz, Population Health Leader, North America, WTW
“Before making coverage changes, employers should consider clinical programs, risk protection such as stop-loss and lower-cost purchasing channels.”
Courtney Stubblefield, Strategy & Specialty Leader, Health & Benefits, WTW
“Plan design tweaking and cost-shifting can’t meet the objective.”
Courtney Stubblefield, Strategy & Specialty Leader, Health & Benefits, WTW
“Employers need a multi-year strategy with finance at the table that delivers a proactive plan for pharmacy and other high-cost risks and holds vendors accountable for results.”
Courtney Stubblefield, Strategy & Specialty Leader, Health & Benefits, WTW
“Employers should start by asking whether they are getting enough value from the money already being spent.”
NEW YORK, Oct. 28, 2026 (GLOBE NEWSWIRE) -- High-cost claimants and pharmacy spending are the leading healthcare cost pressures facing U.S. employers, cited by 86% and 83%, respectively, according to the 2026 Best Practices in Healthcare Survey from WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. As those pressures intensify, employers are increasingly preparing for significant changes across their healthcare programs, including plan design, pharmacy strategy, vendor performance and overall healthcare spending.
The pressure extends across healthcare spending. U.S. employers project healthcare costs will rise 11.1% in 2027 before plan changes. Even after those changes, costs are still expected to rise 9.7%, only 1.4 percentage points lower. That is the highest rate since the early 2000s and nearly three times the pace of wage growth. With cost growth still near double digits, employers expect to take bolder action over the next few years.
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