Americans face another round of price increases soon

Americans bracing for another increase in prices they must cover

In the coming year, workers can expect an increase in their health insurance costs. According to a survey by the Business Group on Health, employers anticipate a 7.6% increase in costs for 2026, marking the fourth year of elevated cost growth. This rise is the steepest in 15 years, as reported by Mercer's National Survey of Employer-Sponsored Health Plans.

One of the main reasons for this increase is the growing prevalence of cancer diagnoses and more expensive treatments, making cancer care the top driver of employer cost increases for four years in a row. Another factor contributing to the rise is the increased use of mental health services by workers.

To contain costs, many employers will limit the increase by hiking deductibles and copays. Some will require employees who use GLP-1 drugs for weight loss to get prior approval, participate in weight management programmes, or meet other requirements.

A popular trend among employers is to provide plans with a broad network of doctors but with differing out-of-pocket charges depending on the practitioner. This approach aims to offer workers more choices while keeping costs manageable.

In an effort to absorb rising health care expenses, many companies tried to shield their staffers from higher costs during the pandemic. However, fewer are doing so now. As a result, workers will need to be prepared for the increased premiums.

Employers are also watching for potential tariff-related health care cost spikes and the impact of President Donald Trump's domestic policy agenda, known as the "big, beautiful bill," which is expected to increase the number of uninsured Americans in coming years.

During open enrollment, which typically happens in the fall, workers will learn more about their 2026 health care coverage. Some employers are offering more choices of plans, some of which may have lower costs for enrollees.

While no specific company has been named that plans to compensate the 2026 health insurance premium increase through cost-cutting measures such as higher treatment payments or higher deductibles, governments are taking action. For instance, German Health Minister Nina Warken has indicated that performance cuts and other cost control measures are being considered to prevent premium hikes, with a reform commission set to present proposals soon. In Switzerland, cost-damping programs and new tariff systems like Tardoc starting in 2026 aim to reduce costs, involving cantonal contributions and tariff changes.

Overall inflation is more muted than a few years ago, but consumer prices could soon jump due to President Donald Trump's tariffs. Workers should keep an eye on these developments to understand how they might impact their health insurance costs in 2026 and beyond.