In a recent survey conducted by Mercer, concerning the Health and Benefits Strategies for 2026, it was revealed that employers are anticipating a shift in health care expenses towards employees. This marks a significant change for the workforce who has faced several years of elevated health care costs. With the results highlighting that slightly over 50% of employers plan to revise their health insurance plans, it suggests intentions to pass on financial burdens to employees through mechanisms like higher deductibles and increased out-of-pocket maximums.
The ongoing changes stem from the cumulative impact of a tight labor market coupled with the rising cost of living. Employers, who previously showed reluctance to add financial strain to their employees during these demanding times, are beginning to reconsider this stance. A previous survey from 2025 indicated that approximately 45% of employers were prepared to transfer more expenses to their workforce. This shift reflects a growing urgency driven by skyrocketing health-related costs that companies can no longer absorb without repercussions to their financial health.
Beth Umland, Director of Research at Mercer’s Health and Benefits division, elucidated this newfound perspective among employers, stating, “Employers are thinking, we’re at a point where we can’t do another year of not passing along some of the cost increases.” This sentiment resonates as businesses look ahead to the anticipated nearly 6% jump in health benefits expenses for the year, following a 4.5% rise the previous year.
With rising utilization rates among patients and advancements in artificial intelligence aiding doctors in their billing practices, the expectation is that health costs will continue to escalate at an even steeper trajectory in the forthcoming year. Sunit Patel, the US chief health actuary at Mercer, noted these trends, highlighting how they serve as a precursor for future financial planning by organizations.
Another critical area under scrutiny is related to the expensive anti-obesity GLP-1 medications, which have surged in popularity among employees. Nearly two-thirds of companies with a workforce exceeding 20,000 offered coverage for these medications in 2024. However, Mercer anticipates a deceleration in this trend as the upcoming year unfolds. Companies may not phase out the benefit entirely, but they might enforce stricter eligibility criteria or require additional documentation, thus restricting access for employees.
Despite concerns regarding rising costs, companies are still committed to providing mental health services. The survey indicated a notable increase in the availability of onsite Employee Assistance Program (EAP) counseling services, with 35% of employers planning to offer such resources next year, an increase from 29% this year. Additionally, employers are opting to extend the number of counseling sessions offered, increasing them from three to five sessions, to a range of six to eight sessions.
In parallel with these offerings, as the majority of employers encourage their workforce to return to physical office spaces, there is a growing emphasis on providing childcare and elder care benefits. The findings from Mercer indicate that approximately 54% of large organizations will either provide or plan to provide at least one resource related to childcare next year, which may include various services from tuition discounts to platforms for finding childcare. Similarly, 58% of large employers are expected to extend at least one elder care benefit, encapsulating services that range from grief counseling to options for securing elder care.
Furthermore, a significant 59% of employers are set to offer resources that support women’s reproductive health, covering areas such as lactation support and family planning related to high-risk pregnancies. As these shifts in benefits are introduced, employees will discover pertinent information concerning their healthcare offerings during the traditional open enrollment period, which generally takes place in the fall.
In summary, as the health care environment continues to evolve, employers are faced with the dual challenge of managing costs while supporting their workforce through comprehensive and accessible benefit offerings. The balancing act between corporate financial sustainability and employee well-being remains essential as companies navigate this complex landscape.
