Dive Brief:
- Nearly half of large U.S. employers — those with 500 or more employees — plan to change their healthcare plan offerings next year in a way that will shift more costs onto workers, according to a Thursday press release from Mercer.
- In addition to cost-shifting strategies like raising deductibles and copays, many large employers say they will pursue more affordable options for workers by exploring or planning to offer nontraditional plans, like a high-performance network or variable copay plan.
- While healthcare costs for workers may be going up, many large employers don’t plan to cut on benefits that have “become standard,” Mercer said. In vitro fertilization coverage, caregiving support and one-on-one financial counseling have become common among such employers and are likely to remain in place, Mercer found.
Dive Insight:
Healthcare costs have been on the rise for years, but with workers in the U.S. feeling the tension of a low-hire labor market, potential negative impacts from artificial intelligence and high inflation, it may be a precarious time to add even more stress to their plates.
At present, employees largely blame insurers for the rising costs rather than employers, a survey released in June by the Coalition to Strengthen America’s Healthcare found, with the federal government and drug companies next on the list. But employers are still sensitive to the strain workers are under.
“Employers are under intense pressure to manage another year of elevated health benefit cost growth, but they also know that affordability matters deeply to employees,” Simon Camaj, U.S. health leader at Mercer, said in a statement.
Mercer surveyed 604 U.S. organizations in April and May, including 408 with 500 or more employees and 123 with fewer than 500 employees.
Prescription drug benefits is one area driving high costs, Mercer said, with drug costs rising 9% in 2026.
Employers have been split on whether to cover GLP-1 prescriptions, particularly for the primary purpose of weight loss, over the past several years. While about half of large employers offered this coverage last year, Mercer’s survey showed this may be an area employers are looking to save money. Six percent of large employers dropped their coverage of weight-loss-related GLP-1 coverage in 2026, and another 5% are considering it or planning to do so next year.
Shifting higher costs onto workers can have consequences beyond reduced employee morale. Studies have shown employees may reduce or delay care if costs get out of hand, which may increase their and employers’ costs over the long term.
