Health Insurance Cost Hike for Workers

Overview

Brace yourself, workers! Prepare for a significant increase in your health insurance costs in 2026. Employers are gearing up for the steepest rise in health benefit expenses in 15 years, according to recent reports.

Increased Premiums

Workers can anticipate an average increase of 6% to 7% in premiums. Some companies will attempt to limit the increase by raising deductibles and copayments, as stated by Beth Umland, director of research for health and benefits at Mercer.

Cost-Cutting Measures

Approximately 59% of employers plan to make cost-saving changes to their health insurance plans in 2026, an increase from 44% in 2024, Mercer found.

Health Care Coverage Details

More details about your 2026 health care coverage will be revealed during open enrollment, typically held in the fall. Many employers are offering more plan choices with varying out-of-pocket charges depending on the practitioner.

Top Drivers of Cost Increases

Cancer care has been the primary factor driving employer cost increases for four consecutive years, due to pricier and more advanced treatments. Employers are focusing more on cancer prevention and screenings, such as expanding breast cancer screening coverage.

Popular but Pricey Treatments

Popular but costly medications for conditions like diabetes and obesity are contributing to rising employer costs. Nearly all companies surveyed will cover these drugs in 2026, while around three-quarters will do so for obesity.

Future Considerations

Companies are monitoring potential impacts from Trump's domestic policy agenda, known as the 'big, beautiful bill', which is expected to increase in coming years. However, it's still too early to tell due to many uncertainties.