Total health benefit costs per employee are slated to increase 6.5% in 2026, marking the highest jump since 2010, according to Mercer’s 2025 National Survey of Employer-Sponsored Health Plans.
That figure takes cost-reduction measures into account. Employers estimate nearly a 9% increase in plan cost on average without pursuing these measures, according to a Sept. 3 news release from the consulting firm.
More than 1,700 U.S. employers responded to the survey. The firm’s projections indicate 2026 will be the fourth consecutive year of raised health benefit cost growth. The two main factors: price pressures and utilization rates.
Most employers will make cost-cutting adjustments such as raising deductibles to handle these increases in 2026, the report said. Others are pursuing longer-term strategies to avoid offloading costs on employees. The survey also found some employers are still prioritizing behavioral healthcare access despite these shifts.
Mercer advised employers to encourage employees to carefully evaluate their health plan options this year, especially if major plan design changes go into effect.
