Americans with employer-sponsored health insurance could see their monthly premiums rise by 6% to 7% in 2026, according to a new survey from consulting firm Mercer. The increase is largely driven by higher prices for specialty drugs and the growing use of medical services.
Mercer projects that overall employer health plan costs will increase by 6.5% in 2026, even after companies adjust benefit designs. For employers that do not make any changes, costs could jump as much as 9%.
“More than half of U.S. employers are looking for ways to reduce health plan spending next year,” said Sunit Patel, chief actuary at Mercer. He pointed to rising costs for weight-loss and cancer treatments, along with increased demand for behavioral health services.
Patel noted that virtual healthcare is also reshaping usage patterns: “The rise of telehealth, particularly in behavioral health, has reduced geographic barriers and made care more convenient for patients.”
Employers Brace for Higher Costs
Mercer’s report highlighted several factors contributing to rising healthcare expenses, including:
- Economic inflation
- Higher wages for healthcare professionals
- Growth in non-physician providers
About 59% of employers surveyed said they plan to take stronger steps to cut costs in 2026, up from 48% in 2025. Strategies include increasing employee cost-sharing, raising deductibles, and investing in programs to help workers better manage expensive conditions.
“Some of these measures could lead to higher out-of-pocket costs for employees,” said Beth Umland, Mercer’s director of research.
Two-thirds of large employers, with more than 500 employees, said they aim to expand access to behavioral health services as part of their benefit strategies.
Mercer’s findings are based on a survey of 1,700 U.S. employers conducted between June 11 and August 12, 2025.