U.S. employers expect to see their healthcare costs rise by 11.1% next year, according to a survey by WTW, a global advisory firm. If that estimate pans out, it will be the largest annual increase in healthcare costs in more than 20 years, The Wall Street Journal said Thursday.
Employers have faced rising healthcare costs for years, and the pace of the increase has been accelerating. A WTW official told the Journal that the rise in costs is becoming “utterly unsustainable.”
Workers will almost certainly feel the pinch as employers look to pass on some portion of their cost increases. In 2026, employees covered by workplace insurance are expected to spend $5,297 on average on healthcare, including premiums, copays and deductibles, according to the consulting firm Aon. That’s a $388 increase from 2025, or roughly 8%, and the increase next year could be larger.
The factors driving costs higher include expensive cancer treatments and the widespread use of weight-loss drugs.
The bottom line: Healthcare costs continue to rise, with no end in sight. Brace for another major increase next year.