Employer-sponsored health insurance is facing its biggest cost increase in 15 years, and workers are going to feel it. According to recent research from Mercer, health benefit costs per employee are expected to jump 6.5% in 2026, driven by surging healthcare prices, expensive new treatments like GLP-1 weight loss drugs, and increased utilization of services. Other projections put the increase even higher, with consulting firm Segal estimating a median 9% rise in group medical plan costs — the highest in over a decade.
For employees, this means higher premiums, bigger deductibles, and increased copays during open enrollment. Some employers may also respond by narrowing provider networks or revising drug coverage to keep their own costs in check. An Investopedia article by Jeanine Skowronski breaks down what’s changing, how employers are responding, and practical steps you can take — like reviewing your plan’s full benefits summary and considering a health savings account — to make the most of your options.