Employers can anticipate a 6.7% increase in total health benefit costs in 2026 — the steepest in 15 years — according to the 2025 National Survey of Employer-Sponsored Health Plans from consulting firm Mercer.
Mercer fielded responses from 2,010 employers for the study.
What to know
The cost per employee is slated to reach over $18,500, up from $17,496 this year. Mercer partially attributed the jump going into 2025 — which surpassed the rate of inflation and wage growth — to higher prescription drug costs. These costs saw a 9.4% increase, after rebates, for employers with at least 500 workers, while specialty drug costs per employee rose 8.9%.
GLP-1 pressure
More employers also covered GLP-1s for obesity, with most instituting authorization requirements. In 2025, 49% of employers with at least 500 workers and 66% employers with at least 20,000 workers covered the drugs.
An October analysis from the Employee Benefit Research Institute found premiums could increase 5% to 14% if employers cover GLP-1s. Another survey confirmed how larger organizations are more likely to offer this coverage. President Donald Trump’s recent pricing negotiations for Medicaid and Medicare could set a precedent for GLP-1s, but it is still too early to tell.
Top strategies for employers
Unsurprisingly, employers reported that their top near-term concern is managing high-cost claims. Ed Lehman, Mercer’s U.S. health and benefits leader, thinks offering more plans, directing employees to high-performing providers and including specialized health programs can mitigate costs.
“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,” Mr. Lehman said. “It’s a tough challenge, but there are ways that employers can make healthcare more affordable for employees.”
Other issues that are top of mind for employers include measuring health program performance to ensure value and improving access to behavioral healthcare.
