Mercer released its Survey on Health and Benefit Strategies for 2026 on Tuesday, revealing that many companies will reduce their employees' health care benefits to address rapidly growing costs.
The survey found that 51% of large employers plan to shift more health care costs to workers in 2026, up from 45% last year. These changes could include raising deductibles or out-of-pocket maximums, according to Mercer.
Employers expect their health care costs to rise by 6% in 2026, which will result in them passing those expenditures onto their staff.
“While short-term cost containment actions might be needed to address current budget realities, we also see some employers using longer-term strategies, such as offering narrow network plans that emphasize high-quality, high-value care. These strategies may improve health outcomes or make health care more affordable for employees,” said Ed Lehman, Mercer’s U.S. health and benefits leader.
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According to the American Medical Association, Americans spent $14,570 per person on health care costs in 2023. The AHA estimates that 31.2% of health care costs were tied to hospital care, while 16.5% was spent on personal health care.
According to KFF, even when adjusted for inflation, health care costs have risen considerably over the years.
Using 2023 dollars, the average person spent about $11,310 on health care in 2013 and $7,908 in 2000.
A growing concern regarding rising health care costs is the increased use of expensive weight loss medications. A growing number of patients are utilizing glucagon-like peptide (GLP-1) drugs. While these medications have long been covered for treating diabetes, they typically haven't been covered for weight-loss purposes.
These drugs can cost over $1,000 per monthly dose.
“While the trend over the past couple of years has been to add coverage for GLP-1s approved for weight loss, some employers facing large cost increases in 2026 may feel this coverage is out of reach,” said Alysha Fluno, Mercer’s pharmacy innovation leader. “Employers are weighing the immediate costs of covering these drugs against the potential for generating savings down the road once their workforce’s health improves.”
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