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Employers brace for the largest health insurance increase in 15 years

Health insurance costs will rise 6.5% to 10% in 2026 due to drug prices, inflation, and catastrophic claims, marking the largest surge since 2011, experts say.

  • In 2026, Aon predicts employer-sponsored plans will surge at about 9.5%, increasing pressure on U.S. employers and brokers after years of elevated rates.
  • Employers say rising costs are driven by specialty prescriptions, with 59% citing GLP-1 drugs and 50% citing cancer drugs, along with health services and technology industry expenses.
  • Mercer's survey of over 1,700 U.S. employers shows a 6.5% rise on average, IFEBP estimates a 10% jump tied to catastrophic claims and drug costs, and hospital costs rose 7.7%.
  • Employers may shift costs to workers through higher deductibles and copays to contain premiums, while some adopt Medical Expense Reimbursement Plans or Small Business Health Options Program options to manage expenses, benefiting smaller firms.
  • With U.S. medical imports exceeding over $14.9 billion, tariffs and supply-chain factors could raise costs, while healthcare providers' consolidation and inflation may sustain premium increases.
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  • 96% of the sources are Center
96% Center

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Tri-City Herald broke the news in on Wednesday, November 19, 2025.
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