U.S. employers are anticipating a median health benefits cost trend of nine per cent in 2026, which could be offset to 7.6 per cent with changes to plan design, according to a new survey by Business Group on Health.
The survey, which polled more than 120 employers representing 11.6 million plan members, found, on a compounded basis, costs in 2026 are likely to be 62 per cent higher than 2017 levels, attributed to increased use of glucagon-like peptide-1 receptor agonist medications and mental-health resources as well as an increase in cancer diagnoses among employees.
In 2023 and 2024, employers experienced the highest back-to-back increases in a decade, beyond forecasted levels. As a result, employers started 2025 at a major cost disadvantage, the survey noted.
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In response to cost concerns, 41 per cent of employers said they’re either changing pharmacy benefit managers or conducting a request for proposal, while 51 per cent are either changing or conducting an RFP for other health and well-being vendor relationships.
When asked about the impact of U.S. health care costs on global benefits, 67 per cent of multinational employers said it affected their worldwide offerings. Moreover, when asked about controlling health care costs outside the U.S., three-quarters of multinational employers indicated some level of concern.
“In this challenging environment, employers remain firmly committed to an ongoing investment in employee health and well-being,” said Ellen Kelsay, president and chief executive officer of Business Group on Health, in a press release. “Yet they will need to make bold and strategic moves to contain costs, sometimes disrupting health care models along the way.”
Read: Employer health benefits cost trends rising 10% in 2023: survey