Employers are grappling with rising healthcare costs expected to escalate in 2026. Tracy Watts from Mercer predicts that trends forcing cost shifts to employees could intensify as employers face budget constraints. For 2025, a 5.8% increase in healthcare costs is anticipated, potentially leading to similar or greater hikes in 2026. Strategies being employed to mitigate these issues include transitioning to high performance networks and implementing variable copayment plans. However, these financial pressures may compel some companies to reconsider their coverage of GLP-1s, tightening eligibility and conditions.
Watts noted that while employers have been hesitant to shift costs to employees due to affordability concerns, rising healthcare costs in 2026 could make such shifts necessary.
Mercer's projections indicate a 5.8% increase in healthcare costs for employers in 2025, with expectations of even higher increases in 2026 reflecting ongoing challenges.
To manage rising costs, employers are exploring strategies like high performance networks and variable copay plans, aiming to balance quality care with affordability.
The inclusion of GLP-1 medications in employee health coverage could face re-evaluation as companies may implement stricter coverage criteria to control costs.
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