Healthcare 2026 Costs

In 2026, health care costs are expected to increase 6.7 percent, rising the average cost above $18,500 per employee, according to recent research from Mercer. The 2025 National Survey of Employer-Sponsored Health Plans noted that in nearly all employer-sponsored plans, cost is shared with employees through both premium contributions deducted from their paychecks and plan design features that shift some financial responsibility to plan members when they access care. Since employees’ share of the cost of health coverage typically rises at about the same rate as overall cost, “increases of this magnitude are heightening concerns about health care affordability,” Mercer said.

In 2025, the average cost of employer-sponsored health insurance reached $17,496 per employee, a 6.0 percent increase (which is well above the rate of inflation and wage growth). Contributing to the increase was sharp growth in prescription drug spending, which rose 9.4 percent on average among large employers (500 or more employees). Mercer found that more large employers covered GLP-1 weight-loss medications in 2025 (49 percent, up from 44 percent in 2024), which largely contributed to this increase.

“Employers want to minimize increases in paycheck deductions while ensuring employees across all pay levels can afford the care they need, when they need it,” said Ed Lehman, Mercer’s US Health and Benefits Leader. “It’s a tough challenge, but there are ways that employers can make health care more affordable for employees.”

The survey found the following:

• Plan options. The survey revealed that the number of medical plan choices offered to employers is increasing. In 2025, 67 percent of large organizations offered three or more medical plans at their largest worksite, up from 60 percent in 2023.
• Cost for different plan options. In preferred provider organization (PPO) plans offered by large employers, Mercer found that the average monthly premium contribution paid by employees is $191 for individual coverage, and the average deductible is $1,064. In contrast, in a high-deductible health savings account (HSA) plan, on average employees pay only $109 monthly for coverage, but the deductible is higher, at $2,481.
• Specialized programs. Large employers are providing specialized, stand-alone programs designed to help employees better manage specific health conditions. These programs are typically low-cost or free to members and are often delivered virtually, Mercer said. In 2025, 32 percent of large employers offered a stand-alone specialized diabetes program, 28 percent offered a musculoskeletal program, and 23 percent offered a fertility program.
• Upcoming priorities. The survey found that a top priority for employers over the next three to five years is measuring the performance of their health programs to ensure they are delivering value. Over three-quarters of large employers (77 percent) said this would be an important priority during that timeframe.

WCI offers cost-saving employer group healthcare options through our in-house agency and insurance partners, for both small and large employer groups. See our web page for more information.

From WCI's HR Answers Now ©2025 CCH Incorporated and its affiliates. All rights reserved.