Rising Health Insurance Costs Loom in 2026
Workers, brace yourselves. Health insurance could get pricier as we approach 2026.
Despite lower overall inflation compared to a few years back, employers anticipate a significant rise in health benefits expenses in the next 15 years. A recent national survey by Mercer highlights these concerns.
This uptick means many employees may find themselves contributing more to their healthcare costs and those doctor visits might feel a bit heavier on the wallet. Many have already felt the sting of rising consumer prices, particularly as they fluctuate under policies like those from the previous administration.
Mercer estimates that workers should expect premium increases of around 6% to 7%. Companies might try to control the rising costs, but often this comes at the expense of higher deductibles and out-of-pocket expenses.
“The cost of coverage is increasing,” explains Beth Unland from Mercer. She attributes this to both high healthcare prices and a surge in demand for services.
During the pandemic, numerous businesses worked hard to shield their employees from escalating costs by absorbing them, but such practices are becoming less common.
About 59% of employers plan to adjust their health insurance strategies next year, a jump from 44% in 2024, according to Mercer. These strategies typically involve requiring more employee contributions when they seek care.
Workers will get clearer insights into their healthcare options during the open enrollment period, usually happening in the fall.
Many employers are expected to broaden their plan offerings, some potentially featuring lower costs for participants. A common trend includes creating bigger networks of physicians, though this might come with variable out-of-pocket costs.
The prediction of a 6.5% increase in 2026 marks the fourth consecutive year of rising costs, following a decade where increases averaged around 3%. This forecast also considers measures employers are taking to mitigate costs, based on a survey of over 1,700 employers with more than 50 employees.
Other reports align with these findings. Companies surveyed by the Health Business Group anticipate a typical cost hike of 7.6% in 2026, signaling a pattern that consistently outpaces actual healthcare expenses.
“This year’s situation appears more challenging than ever,” commented Ellen Kelsei, the CEO of an industry group, during a recent press meeting.
On a related note, health insurance providers project an 8.5% increase in employer healthcare costs for three consecutive years. These trends for 2024 and 2025 have been updated based on insurance companies’ latest experiences.
A Health Business Group survey of 121 large firms indicates that rising diagnosis rates and costly treatments are driving increased employer costs for the fourth year in a row.
This trend has prompted employers to emphasize cancer prevention and screenings, including expanded breast cancer checks and alternatives to colonoscopies.
Additionally, the recent popularity of expensive GLP-1 medications is also adding to cost concerns. While nearly all surveyed companies will cover these diabetes drugs in 2026, less than 75% will provide coverage for obesity treatments.
Interestingly, 80% of employers have reported a rise in the use of these medications, with another 15% expecting similar increases. To manage expenses, more companies may require prior approvals, join weight management programs, or implement additional conditions.
Moreover, there is a noticeable uptick in the use of mental health services. Employers have been actively working to enhance access to such care and address lingering stigma.
Looking ahead, businesses are grappling with healthcare costs linked to tariffs and the impacts of past policies, though it’s still early to draw definitive conclusions amid many uncertainties.
