83% of employers say rising healthcare costs are squeezing pay raises

Advertisement

More than 8 in 10 employers say rising healthcare costs are cutting into wage and salary increases, according to a survey conducted by The National Alliance of Healthcare Purchaser Coalitions.

The 2026 Pulse of the Purchaser survey, released Aug. 12, includes responses from 408 employers in May and June.

Four things to know:

1. The survey also found 92% of employers say healthcare costs hurt their competitiveness, and 93% expect costs to shift to employees. 

2. Nearly all respondents, 97%, called attracting and retaining employees a top priority, and 98% said health and wellbeing benefits are crucial to that effort.

3. Employers pointed to drug prices (77%), high-cost claims (75%) and hospital prices (68%) as the top cost threats. They projected an average 7.7% healthcare cost increase before plan design changes, with 33% of those estimating expected increases of 9% or more.

4. Respondents estimated that hospital costs accounted for 30.5% of total healthcare spend, followed by prescription drugs (21.1%) and professional fees (19.1%).

At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.

Advertisement

Next Up in Payer

Advertisement