Employers Anticipate Healthcare Costs to Rise for 5th Consecutive Year

September 4, 2026 - 20:07

A new report from Marsh indicates that companies should prepare for the fifth straight year of rising healthcare expenses, with the projected increase being the sharpest jump in over two decades. The firm's analysis points to a combination of factors driving this trend, including the ongoing high cost of specialty prescription drugs, particularly those used for weight loss and diabetes management. hospital consolidation and continued inflation in medical supplies and labor are putting significant pressure on plan pricing.

According to the data, employers are likely to see their medical benefit costs climb by nearly nine percent on average next year, before any plan design changes. This marks a notable acceleration from the already substantial increases seen in recent years. While many organizations have tried to manage expenses through wellness programs and stricter utilization reviews, these efforts are being outpaced by the sheer cost of new treatments and a rise in chronic conditions among the workforce.

The report also highlights a growing concern about behavioral health services, which are seeing higher demand and limited provider networks. For human resource leaders, the takeaway is clear: simply absorbing the increase is not sustainable for most budgets. Instead, the advice is to shop around aggressively among carriers, consider alternative funding models like self-insurance, and push for more transparent pricing from hospitals and drugmakers. Without such steps, the financial strain on both employers and their workers is expected to intensify well into the next fiscal year.