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Health Trends 2026: Balancing cost control with benefits optimization 

Top trends driving the future of employer-provided healthcare

Employer-provided health plans face intense pressure as projected medical trend is double-digits across most markets through 2026. Underlying medical plan cost drivers include increased utilization from higher incidence of health conditions and advanced technologies. 

Through our Health Trends global research of 268 insurers across 67 markets we learned the top challenges and opportunities for employer-provided health and benefits with three key trends

Balancing cost control with benefits optimization

Our Health Trends 2026 global report explores what employers need to do to actively reshape the benefits mix to deliver more value for employees and the business.
Get the report now

Three key trends

Insurers say that medical inflation and utilization changes due to greater incidence of health conditions have the most significant impact on their 2026 medical trend rates

4 in 10 (41%) insurers typically include an advocacy service for managing complex or chronic diseases under plans

50% of insurers typically cover mental health screenings, despite employee demand, and just 16% are prioritizing new programs to support aging employees

Proactive management of health plan risk has become crucial. 

Understanding these trends and their impact is key for employers, allowing them to design healthcare plans that meet the needs of business and employees. 
Results show that by moving away from cost shifting towards better cost management can be achieved – a sustainable approach that combines cost management and health quality improvement. Dollars saved can be directed back into the health plan, creating benefits that all employees will use, trust and value.

Use the Health Trends 2026 report to:

  • Get a clear view of the top trends for employer sponsored healthcare for your region and market as you plan for 2026.
  • Learn the three key areas requiring HR professionals’ actions to better prepare for the year ahead.
  • Take action to effectively adapt your health and benefits plans to optimize value for your business and your employees. 

Balancing cost control with benefits optimization

Our Health Trends 2026 global report explores what employers need to do to actively reshape the benefits mix to deliver more value for employees and the business.
Get the report now

The benefits optimization curve opportunity

Now is the time for employers to adopt strategic measures that can manage costs and optimize spending to protect plan sustainability. 

Download Health Trends 2026

The goal is clear: to effectively manage risk and cost, improve affordability, expand protection, and widen the scope of benefits to better meet employee needs. Here’s what you need to know.
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Download Health Trends 2026

Find out the top trends driving the future of employer-provided healthcare, and how to adapt your plans to optimize value. 

Report FAQs 

The Health Trends report is a comprehensive survey of insurers, designed as a guide to support active plan management that balances coverage adequacy and cost sustainability. The trends outlined in this report will help employers deepen dialogue with their advisors and insurers. Exploring more innovative forms of cost containment, embracing effective new treatment regimes, and ensuring that medical coverage meets the needs of the whole workforce are essential as medical costs and workforce needs continue to rise. It provides insights into potential challenges and opportunities for benefits’ decision makers, across a number of industries.

The Health Trends report is essential reading for benefits decision makers within their organization, including leaders and managers of Human resources, Rewards, Compensation and benefits, Risk, Finance, Insurance and C-Level executives. The report is relevant to different industries and all sizes of organizations, including Global HR professionals of multinational firms.

It is a key resource for employers who want to reassess their health and benefits plans to optimize value for their business and employees as they head into 2026.

The Mercer Marsh Benefits (MMB) Health Trends report stands out for its comprehensive analysis, expert insights, and forward-thinking approach. It is developed by Mercer Marsh Benefits, along with other subject matter experts in human resources, insurance, and risk consulting across Marsh McLennan, and is considered one of the leading sources of information about the medical conditions that drive claims costs and frequency, their impact and how strategic management of plan cost will enable plan sustainability over the longer-term. The results are from our insurer survey, which is differentiated from others in the market by its size, geographic scope and insurer responses.

To produce our Health Trends 2026 report, Mercer Marsh Benefits (MMB) surveyed 268 insurers across 67 markets to explore the key trends shaping employer-provided health benefits. The survey was fielded in June and July 2025.

These trends are important for employers to consider as the ongoing need for cost containment is likely to continue throughout 2026. However, at the same time, employee benefits will continue to be an important element in attracting, retaining, and engaging employees in a highly competitive talent market.

Medical trend is the year-over-year cost increase for claims on a per-person basis made under a medical scheme. It is comprised of a number of factors, including medical inflation (increase in cost for services/supplies; can be driven by currency fluctuations with respect to imported supplies), changes in treatment mix (potentially more expensive options now being administered), utilization changes (more/less of certain age groups leveraging health services), and regulatory changes.

The key drivers of medical trend are summarized below:

  • Rising plan utilization driven by aging populations and the growing prevalence of chronic health conditions
  • Healthcare staff shortages delaying access to primary care and bringing greater reliance on virtual care, urgent care, or hospital settings
  • Pressures on public health systems, leading more people to use their private health plan benefits
  • Higher-cost treatments, notably advanced cancer therapies, adding complexity to care delivery and management
  • Dependence on imported medical goods and services in many markets, creating delays and disruptions in supply chains

The Health Trends report provides valuable insights, actionable steps, and strategies to effectively manage health risks and challenges within your organization. The report is designed as a guide to support active plan management that balances coverage adequacy and cost sustainability. It supports employers in developing a meaningful benefits strategy they can use to engage in dialogue with stakeholders — including advisors and insurers — to understand available options within plans and how to tailor support for the workforce.

The report responds to questions around:

Cost and affordability trends: including top cost drivers in employee benefits by dollar amount (cancer, diseases of the circulatory system, musculoskeletal conditions, respiratory conditions, gastro-intestinal diseases), frequency and top risk factors on medical cost.

Employee health and wellbeing, plan design and innovation, workforce and talent, compliance and policy, technology and data.