Expect Increased Health Care Costs, Here’s What You Need to Know
In light of prolonged escalations in healthcare costs, a survey conducted by Mercer’s Health and Benefit Strategies for 2026 reveals that approximately half of employers are contemplating modifications to their health insurance offerings, with a focus on transferring a greater portion of the expense to employees.
These adjustments may involve implementing higher deductibles or annual out-of-pocket maximums, as outlined in the survey. The recent tight labor market and increasing cost of living had previously deterred companies from augmenting their workers’ financial burden; however, 45% of employers indicated in 2025 that they would shift more costs to staffers.
Beth Umland, Director of Research at Mercer’s Health and Benefits business, commented, “Employers are arriving at a juncture where we can no longer sustain another year without passing along some of the cost increases.”
For the current year, companies anticipate an almost 6% surge in health benefits expenses, following a 4.5% increase in 2024. These costs are projected to rise at an even steeper rate in the subsequent year, due in part to increased patient utilization and doctors leveraging artificial intelligence for more accurate billing to insurers.
One area of significant cost concern is coverage for anti-obesity GLP-1 medications, which are both popular and expensive. In 2024, nearly two-thirds of companies with at least 20,000 workers provided such coverage, while 44% of employers with 500 or more workers did. The pace of employers adding this coverage may decelerate in 2026, according to Umland.
Companies may be hesitant to discontinue this benefit but may instead tighten eligibility requirements or request additional documentation, making it more challenging for employees to access the coverage.
In a positive development, employers remain steadfast in their commitment to providing mental health services for their staff. The survey indicates an increase in onsite Employee Assistance Program counseling services, with 35% of companies planning to offer these services next year, up from 29% this year. Additionally, there is a trend towards offering more sessions, moving from the traditional three to five, to six to eight sessions.
As employers increasingly require staffers to return to the office, there has been a growing interest in providing child care or elder care benefits. According to Mercer, 54% of large employers currently provide—or plan to offer next year—at least one child care resource, such as a platform for searching for child care, access to backup child care services, or tuition discounts.
Similarly, 58% of large employers offer—or plan to provide—at least one type of elder care benefit, including grief counseling, a platform for searching for elder care, or access to backup elder care services.
Lastly, approximately 59% of employers will offer at least one resource to support women’s reproductive health, encompassing lactation support, high-risk pregnancy, and pre-conception family planning.
Employees can expect more detailed information about their healthcare benefits for the coming year during the annual open enrollment period, typically occurring in the fall.
