Phoenix-based employee benefits brokerage calls on employers to act as 2027 healthcare cost projections reach their steepest growth rate in over two decades.
Phoenix, AZ (PRUnderground) September 1st, 2026
U.S. employer healthcare costs are projected to hit their steepest single-year growth rate in more than two decades in 2027, according to a new survey from WTW, as reported by the Wall Street Journal. The projections extend what is now one of the most sustained periods of healthcare cost acceleration employers have faced in decades. The Benefit Doctor, a Phoenix-based independent benefits firm serving small and mid-sized employers nationwide, is calling on business owners to address plan design before the next cost cycle arrives.
WTW's survey projects a 2027 increase of 11.1%, the steepest growth rate in more than 20 years. That would mark the fifth year of escalating employer costs. In 2026, workers are expected to spend an average of $5,297 on healthcare, $388 more than in 2025. WTW population-health leader Jeff Levin-Scherz told the Wall Street Journal the trend is "utterly unsustainable" for employers.
The accelerating costs are being driven by a combination of factors, including expensive cancer treatments, hospital price increases fueled by AI-assisted billing, and rapid growth in the use of GLP-1 weight-loss drugs, according to the Wall Street Journal. The financial pressure has become significant enough to push healthcare benefit decisions out of HR and into the C-suite, with CFOs, CEOs, and boards now actively engaged in benefits decisions at many larger companies.
Zak Harlow, Founder and CEO of The Benefit Doctor, says the sustained acceleration reflects a problem deeper than rising premiums. The firm's proprietary Cure the Pain™ Framework centers on building comprehensive employee benefit plans around actual workforce data year-round, treating benefits as a 12-month strategy rather than an annual renewal event. "Employers who haven't fundamentally changed how they approach plan design are about to feel these projections," said Harlow.
"If your entire benefits strategy starts when the carrier hands you a renewal, you don't have a strategy. You have a reaction," said Harlow, "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 actually diagnose what is driving the cost and evaluate every available option."
The Benefit Doctor serves businesses across the United States with licensed professionals representing 38 states. The employee benefits consulting firm's independent broker model means its recommendations are not tied to any single insurance carrier. Founded in 2020, the firm was built to provide small and mid-sized employers the kind of proactive, data-driven benefits strategy that has historically been accessible only to larger corporations.
Business owners with 20 or more employees who want to review their benefits structure ahead of the 2027 cost cycle can schedule a consultation at TheBenefitDoctor.com.
