Employer Health Insurance Premiums Expected to Rise Significantly in 2026
Millions of Americans who receive health coverage through their employers are bracing for potential premium increases in 2026, following similar rises in Affordable Care Act plans, a trend that could strain household budgets.
Experts indicate there won’t be a uniform increase across all employer-sponsored plans, but several recent surveys point to substantial cost hikes. A September report from Mercer found employers anticipate healthcare plan costs to climb nearly 9% on average in 2026 if cost-control measures aren’t implemented. Aon projects a 9.5% increase, based on data from over 1,000 U.S. companies, while Segal estimates a roughly 9% rise for health plans and 11% for prescription drugs. “Last year, health insurance premiums went up. This year, they went up. And next year, they’ll go up,” said Dr. Kevin Schulman, a professor of medicine at the Stanford University School of Medicine who researches employer-based health insurance.
Unlike ACA plans, where insurers publicly file proposed rate increases, employer negotiations with insurers are typically private, meaning the full extent of increases may not be apparent until open enrollment. Employers may choose to pass these costs onto employees through higher premiums, increased deductibles, or copays, or absorb the costs themselves, particularly in competitive labor markets. Rising healthcare costs, including hospital expenses and prescription drug prices – notably GLP-1 medications – are major drivers of these increases, mirroring pressures seen in the Kaiser Family Foundation’s analysis of ACA premiums. Health care spending jumped about 8.2% in 2024 and is projected to grow another 7.1% this year.
The impact of these rising costs extends beyond premiums, potentially influencing decisions about healthcare access and utilization. Company size and employee health also play a role, with smaller employers and those with older or less healthy workforces facing steeper increases. Some companies may also limit provider networks to control costs, a strategy that can affect patient choice. For more information on understanding your health insurance options, visit Healthcare.gov.
Officials say employers are currently evaluating their options for the coming year, and adjustments to plans may vary widely depending on individual company circumstances.
