Washington, United States (Enmaeya News) — Employers across the United States are bracing for a significant jump in healthcare expenses next year, with projections showing a median increase of 9% over current levels, the largest anticipated annual rise in more than a decade.
The forecast comes from the Business Group on Health’s 2026 Employer Health Care Strategy Survey. Rising pharmacy costs, increased cancer care, and higher demand for mental health services are driving the surge. Widespread use of GLP-1 medications for obesity treatment is also contributing to higher spending.
To manage expenses, about 51% of large employers plan to make changes to health plans in 2026, including raising deductibles or out-of-pocket maximums, effectively shifting costs to employees. Another 35% are exploring non-traditional medical plan options aimed at delivering higher-quality, more cost-efficient care.
The projected increase follows a pattern of actual costs outpacing expectations in recent years. In 2023, employers predicted a 6.6% rise, while actual costs grew 6.8%. In 2024, the forecast was 7.1%, but costs increased 7.5%.
Employers face the ongoing challenge of balancing cost containment with maintaining comprehensive benefits, highlighting the need for innovative plan designs and cost management strategies.
