Employers to Shift More Health Care Costs to Workers by 2026 as expenses rise
Just over half of employers are planning to adjust their health insurance offerings to increase staffers’ share of the cost, such as instituting higher deductibles or annual out-of-pocket maximums, according to Mercer’s Survey on Health and Benefit Strategies for 2026. (Source: Fotor AI)
Amid accelerating medical inflation and post-pandemic utilisation spikes, global employers are preparing to shift a larger portion of healthcare costs to employees by 2026 — a structural change that may reshape employee benefits design, workforce sentiment, and healthcare delivery models.
According to Mercer’s latest Survey on Health and Benefit Strategies for 2026, more than 50% of employers plan to implement measures such as increased deductibles, higher annual out-of-pocket limits, or stricter cost-sharing policies. This marks a reversal from recent years, when competitive labour dynamics and inflation pressures deterred companies from transferring medical cost burdens to staff.
Health Insurance Costs Expected to Surge Again in 2025
Employer-sponsored health benefit costs are projected to rise by nearly 6% in 2025, following a 4.5% increase in 2024. Several key drivers are fueling this uptick:
Higher utilization of health services, as post-COVID healthcare demand normalizes and chronic care needs rise
AI-enhanced medical billing, enabling providers to submit more comprehensive and higher-value claims
Escalating pharmaceutical expenses, particularly from GLP-1 weight-loss drugs, which continue to gain employer coverage despite their high cost
In 2024, 65% of companies with over 20,000 employees covered GLP-1 medications. However, as costs rise, Mercer expects adoption to slow in 2026, with employers introducing narrower eligibility criteria or additional documentation requirements, thereby limiting access to high-cost treatments.
Mental Health and Family Support Benefits Remain a Priority
Despite rising costs, the survey shows that employers are doubling down on services that support mental health, family care, and reproductive health, reflecting shifting workforce expectations and long-term talent retention strategies:
35% of employers will offer on-site Employee Assistance Program (EAP) counseling in 2026 (up from 29% in 2025)
Mental health session limits are increasing to six to eight visits annually per employee
54% of large employers will provide child care benefits, such as search platforms, backup care, or tuition discounts
58% plan to offer elder care services, including grief counseling, backup care, and referral tools
59% will provide resources for women’s reproductive health, including lactation support and high-risk pregnancy planning
Market Impact: Strategic Shift Across Industries
This anticipated realignment in cost-sharing strategy is likely to drive changes across multiple domains:
Human resources teams will face heightened scrutiny over benefit fairness, particularly for mid- to low-income workers
Insurance and health tech providers will see increased demand for modular, digital-first solutions to optimize plan design and cost control
Pharmaceutical firms, especially those producing high-demand therapies like GLP-1s, may encounter new coverage constraints affecting long-term growth
With open enrollment periods approaching in Fall 2025, global employers are under pressure to balance rising medical costs with workforce well-being and benefit equity. Analysts suggest that this could accelerate a shift toward value-based care, digital health platforms, and personalized insurance offerings.
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Source：
Mercer – Survey on Health and Benefit Strategies for 2026
