Dive Temporary:
- Practically three-quarters of U.S. finance leaders rank healthcare amongst their corporations’ 5 largest working expense issues, consulting agency Mercer present in a current survey.
- The analysis comes because the speedy rise of GLP-1 weight-loss drugs — like Wegovy and Ozempic — is including to volatility in employer well being prices.
- “The survey outcomes clarify the far-reaching impacts of rising well being profit prices for particular person organizations,” Susan Potter, president of Mercer U.S. and Canada, mentioned in an emailed assertion. “Solely about one in 4 CFOs mentioned that their group was capable of take in the fee will increase over the previous two years with none enterprise impacts, akin to slower wage development, diminished hiring, or greater costs.”
Dive Perception:
Employer-sponsored medical insurance prices are projected to rise 6.7% in 2026, the very best improve in 15 years, pushing the common expense per worker above $18,500, in accordance with Mercer, a Marsh McLennan subsidiary that advises corporations on workforce points.Â
The 6.7% determine, which comes from Mercer’s 2025 Nationwide Survey of Employer Sponsored Well being Plans, represents the anticipated common improve after cost-saving modifications employers deliberate to make, the consulting agency mentioned. Earlier than modifications, employers anticipated a median improve of over 9%, which might be 5 to six factors above the Shopper Worth Index.
“The present elevated price pattern, which started in 2023 following a decade of development averaging solely about 3% yearly, is placing mounting strain on profit budgets and, in some organizations, starting to have an effect on broader enterprise operations,” the report mentioned.
The share of finance leaders figuring out healthcare as a prime three concern has risen from 19% in 2024 to 33% in 2026, reflecting a rising CFO problem, in accordance with Beth Umland, director of well being analysis at Mercer US.
“Whereas inflation associated to different items and companies has cooled over this timeframe, the healthcare pattern is accelerating, which is a crimson flag for CFOs,” Umland mentioned in an e mail response to questions. “As well as, well being care claims price has been more and more risky, making it more durable for organizations with self-funded plans to handle their budgets.”
Practically half of these surveyed mentioned they favor modifications to plan design akin to greater deductibles or modified cost-sharing constructions. Fewer CFOs supported rising worker premium contributions.
GLP-1 medication sometimes price between $1,000 and $1,500 per thirty days for customers, with employers usually protecting 70% to 100% of that price, in accordance with a January SHRM article.
Medicare spending on GLP-1 medication reached about $27.5 billion in 2024, greater than 5 occasions greater than in 2019, in accordance with a Kaiser Household Basis evaluation of claims knowledge.
About half of huge employers — these with 500 or extra workers — at present cowl GLP-1s for weight administration, Mercer discovered.
“Whereas extra employers have provided this protection annually for the previous three years, we might even see that pattern gradual or cease in 2026 as employers sought to curb excessive price will increase,” Umland mentioned.
“Those who at present present this protection are evaluating all strategies for managing utilization, from eligibility controls that assist make sure the drugs are utilized by those that will profit most, to requiring participation in a assist program that may assist guarantee members who do use these drugs are positioned to get the utmost advantages.” Â
Mercer surveyed 161 CFOs and different finance professionals in February.
