Here’s How Much More You’ll Pay

If you thought having employer-sponsored health insurance would shield you from rising health costs, you’re in for some bad news. New research shows employers are facing the biggest jump in health benefit costs in 15 years, and many plan to raise premiums, deductibles, and copays in 2026. Here’s what to expect.

Health Insurance Costs Are Spiking in 2026

Employer-sponsored group health insurance costs have increased steadily over the last decade, but 2026 may hit companies—and their workers—harder than usual. 

New data from global consulting firm Mercer shows total health benefit costs per employee are expected 6.5%, on average, the largest jump since 2010 and the fourth consecutive year of elevated cost increases for plan sponsors.

Mercer, which based its findings on survey responses from over 1,700 U.S. employers, attributed the new projected increase to two major factors. 

• Surging health care prices, driven by general economic inflation, medical provider consolidation, artificial intelligence-enhanced billing, and advanced, but pricey treatments, like oncology care and GLP-1 weight loss drugs.
• Increased utilization rates for health care services, largely resulting from care delays during the COVID-19 pandemic and the rise of more accessible virtual care.

But the increases come at a time of other converging pressures. New regulations passed as part of the “One Big Beautiful Bill” carry major, though still evolving, implications for the health care and health insurance industries. 

Plus, employer-sponsored plan providers, in particular, face new financial strains from aging employees remaining in the workforce and so-called “high users,” frequent claimants with significant and complex medical needs. According to the  Employee Benefit Research Institute (EBRI), 20% of individuals with employment-based health benefits account for 84% of overall spending.

“There [are] a lot of things working against health care prices and working against employers looking to offer health insurance,” said Eric Miller, vice president and consulting actuary at Segal, a human resources and benefits consulting firm.

New research from Segal found group medical plan cost trends are projected to increase by a median of 9%, its highest annual projection in more than a decade.

How Employers Are Responding

Employers are likely to pass some increased expenses onto employees like you. 

Per Mercer’s survey results, 59% of employers will make cost-cutting changes to their plans in 2026, up from 48% in 2025 and 44% in 2024. Cost-cutting changes most often correlate to higher deductibles, copays, and other out-of-pocket expenses for employees when they need care. Expect that you could owe more for seeing the doctor and other medical services.

Employer cost-cutting can also mean higher premiums, which tend to increase proportionately to plan costs. If your plan follows national trends, you can expect your paycheck deductions to go up by about 6% to 7%, on average.

Still, employers are often “very hesitant to pass along price increases to their employees,” Miller said. That hesitancy could lead them to explore alternative cost-cutting measures, such as moving to plans with smaller provider networks or revised drug formularies. In other words, your costs stay the same, but your benefits are less generous and accessible.

Mercer, for its part, found employers were looking to lower costs by better addressing high-cost claims through enhanced case management and measuring the performance of health programs for members with chronic conditions.

New Approaches?

Prolonged price increases could lead to the rise of different employer-sponsored health insurance models. 

“More and more smaller employers are looking at aggregating with other smaller employers and considering alternate funded or self-funded approaches,” said Perry Braun, president and CEO of Benefit Advisors Network, which provides employee benefits consulting.

Self-funded health care plans require employers to pay employee health care claims as they occur, rather than fixed premiums. Meanwhile, level-funding health plans, another increasingly popular alternative, require employers to pay a fixed monthly amount for administration, claims payments, and stop-loss insurance, but with a refund option if employees file fewer claims than expected.

Both plan types cost employers less, but won’t necessarily affect your benefits or out-of-pocket costs—they’re just different ways to fund group health insurance.

Smart Enrollment Tips

These steps can help you navigate any changes to your employer-sponsored health insurance.

Bookmark Open Enrollment

Annual open enrollment is your chance to pick between group health insurance options. You’ll want to make sure you understand if and how your plan—or plan choices—are changing in 2026. Don’t assume your current plan will still be the best fit.

“Inertia is very powerful,” said Paul Fronstin, director of health benefits research at Employee Benefit Research Institute (EBRI). “The easiest thing to do is re-enroll in your plan and forget about it. If you have a choice of plans, you really need to look at what those options are.”

Read the Fine Print

You’ll also want to dive into a plan’s benefits summary.

“Look closely at what’s being offered,” Miller said, not just at the advertised out-of-pocket costs. Plan options might include network or prescription drug coverage changes, for instance, that could impact your ultimate selection. Always confirm that a plan will cover your doctors and prescriptions before enrolling.

Assess Your Health Care Needs

Young, healthy employees may find that a high-deductible health care plan (HDHP), which requires more upfront, out-of-pocket costs in exchange for a lower monthly premium, will adequately cover their anticipated medical needs.

In the end, it comes down to balancing what you pay each month (your premium) with what you might pay later (out-of-pocket costs). Take stock of your risk tolerance: A lower premium usually means more financial risk if you need unexpected care.

Take Advantage of Additional Resources

Consider opening a health savings account or flexible spending account, which allows you to save, tax-deferred, for medical expenses. 

Beyond that, your employer might offer ancillary wellness benefits, like smoking cessation programs, virtual therapy, free flu shots, or fitness program discounts, that help you improve and maintain your overall health. Staying healthy can prevent costly out-of-pocket expenses by preventing you from needing care in the first place.