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
