Employers are expecting a median healthcare cost increase of 10% in 2026, according to a survey from the International Foundation of Employee Benefit Plans.
The results reflect the responses from 150 corporate and single employers surveyed between July 30 and Aug. 7.
1. A similar survey conducted last year projected a median increase of 8% for 2025, according to an Aug. 14 news release.
2. Employers said the top factors contributing to a rise in medical plan costs are:
- Catastrophic claims – 31% (up from 20% last year)
- Specialty/costly prescription drugs – 23% (up from 20%)
- Utilization due to chronic health conditions – 15% (down from 16%)
- Medical provider costs – 11% (down from 18%)
3. The employers that selected specialty/costly prescription drugs as their primary reason for the cost increase said the following drugs were primarily responsible:
- GLP-1 drugs – 59% (down from 75%)
- Cancer drugs – 50% (first year this answer option was included)
- Cell and gene therapy – 21% (up from 19%)
- Other drugs (26%)
4. “Employers have indicated that cost-sharing, plan design and purchasing/provider initiatives will be the most impactful techniques to manage costs,” said Julie Stich, the foundation’s vice president of content.
See the full report here.
