National Survey of Employer-Sponsored Health Plans

The call to action is clear – employers need to double down on cost management. The total health benefit cost per employee is projected to rise by 6.5% on average in 2026— the highest increase since 2010—even after planned cost-reduction measures. Without action, estimates suggest costs could increase by nearly 9%. These projections are based on an early analysis of the first 1,700 US employers responding to Mercer’s 2025 National Survey (complete results will be released later this year). After a decade of moderate annual increases around 3%, 2026 marks the fourth consecutive year of elevated healthcare cost growth. With mounting pressure on healthcare budgets, many employers are implementing short-term cost-saving measures while also pursuing longer-term, and sometimes disruptive, strategies to slow future cost increases.

Shifting trends, cost challenges, disruptive strategies – as always, there is a lot to digest in the results of Mercer’s latest National Survey of Employer-Sponsored Health Plans, now in its 39th year.  Despite a second year of elevated cost growth – with another predicted for 2025 -- the survey found that many employers enhanced key benefits to support employees and their families in 2024, while pursuing cost management strategies that reflected concerns about healthcare affordability. How did employers add value to their health benefit programs in 2024? Read more in our US Health News blog post.