Employers to Shift Healthcare Costs: Insights from Mercer’s Survey

Scissors cut a $100 bill, symbolizing reduced benefits.

Healthcare Costs on the Rise: What's Next for Employers?

A recent survey conducted by Mercer reveals that a significant shift is on the horizon for employer-provided health benefits. As 2026 approaches, over half—specifically 51%—of large employers indicated they are likely to implement changes that would increase costs for employees. These changes could manifest as higher deductibles and out-of-pocket maximums, a noticeable rise from the 45% who expressed similar intentions the year before. The survey, which involved responses from 711 organizations in the U.S., highlights a growing concern among organizations grappling with rising healthcare expenses.

Strategic Adaptation to Rising Costs

In light of these challenges, many employers are exploring alternative strategies to manage escalating costs. According to the survey, around 35% of large employers are considering offering non-traditional medical plans, such as variable copay plans, which allow employees to see copays before making appointment decisions. Currently, only 6% of large employers offer such plans, but a striking 28% of employees enrolled in them in 2025, suggesting that these innovative approaches may resonate with health plan members.

Concern Over Weight Loss Drug Costs

An important element of this transition involves the rising costs of weight loss drugs, particularly GLP-1s, which have garnered serious attention from employers. While 44% of large employers currently cover these medications, 77% expressed serious concern regarding their affordability. Some employers may reconsider this coverage in light of anticipated cost increases as they weigh current expenditures against possible long-term benefits such as improved employee health.

Emerging Trends and Future Considerations

It's clear that as healthcare costs climb, employers must find ways to sustain quality care while also managing their bottom lines. Ed Lehman, Mercer’s U.S. health and benefits leader, points out that while immediate cost-containment strategies are essential, longer-term solutions that prioritize quality care could benefit both employers and employees in the future.

From traditional to innovative options, organizations are navigating a complex landscape as they prioritize employee health and financial sustainability. As these trends develop, it will be critical for both employers and employees to adapt to these evolving healthcare dynamics.

Healthcare

Write A Comment

Related Posts All Posts

Democratic Attorneys General Sue Over ACA Rule Changes That Threaten Access to Care

Update Democratic Attorneys General Challenge New ACA Rules A coalition of Democratic attorneys general from 20 states, alongside Pennsylvania's governor, has filed a lawsuit against the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) regarding a recent final rule that is intended to revise the Affordable Care Act (ACA). The lawsuit, co-led by Attorney Generals from California, Massachusetts, and New Jersey, argues that the changes introduced in June undermine access to healthcare for millions. These changes, which are set to go into effect in August, include stricter eligibility checks for ACA plans, the elimination of a special enrollment period for low-income individuals, and a ban on subsidies for gender-affirming care. Advocates believe these amendments could leave up to 1.8 million people without coverage. Implications of the New Rules One of the central arguments presented in the lawsuit states that this final rule is not only “arbitrary and capricious,” but it also violates the Administrative Procedure Act by failing to consider the consequences of such drastic policy changes. Critics highlight that these modifications would create significant barriers to potentially essential health services and are contrary to the intentions of the ACA. Future of Affordable Care Act This legal battle raises essential questions about the future enforcement of the ACA and the mechanisms put in place to protect access to healthcare. As the landscape of healthcare in America continues to evolve, these types of legal challenges remind us of the ongoing debate over healthcare policy and the right to accessible medical services. Healthcare IT professionals and digital innovators must keep a close watch on the outcomes of these lawsuits as they could result in notable changes within the healthcare sector. The implications stretch across health systems, forcing them to adapt to shifting regulations and uncertainties that can affect patient access and operational realities.

Medicaid Cuts Threaten Free Health Clinics: Community Impacts Explored

Update The Untold Strain on Free Clinics Amid Medicaid CutsAs sweeping Medicaid cuts roll out across the U.S., the implications will resonate for years to come. Many may overlook a crucial fact: free and charitable health clinics, which serve as lifelines for uninsured and underserved individuals, are already bracing for the fallout. These clinics, often powered by dedicated volunteers, provide essential, low-cost healthcare at a time when many Americans can least afford it.The recent report from the National Association of Free & Charitable Clinics (NAFC) shows concerning statistics—84% of their patients lack insurance and many are caught in a cycle of unmanageable living costs. With most free clinics operating on budgets under $250,000, the financial strain is palpable. These organizations delivered over 6 million patient visits last year, yet 86% do not engage in insurance billing, relying heavily on private investments for sustainability.Why Free Clinics Are Essential to Our Healthcare SystemThe importance of free clinics extends beyond individual care; they significantly alleviate burdens on broader healthcare systems. By emphasizing preventive and primary care, these clinics help patients manage chronic issues, which reduces reliance on emergency rooms, notorious for high costs associated with non-emergent treatments. A study indicates that uninsured individuals often resort to emergency services for conditions that could be managed through regular check-ups, leading to an unfortunate cycle of financial distress.Facing the Future: A Projection of NeedWith the demographic of uninsured Americans projected to rise to 27.3 million this year alone, many will seek shelter in local free clinics. The tragic reality is that with the recent passage of the “One Big Beautiful Bill Act,” up to 16 million people could lose their Medicaid coverage in the next decade—a reality that will push many into free clinics, deepening their reliance on these vital resources.In personal stories, the gravity of this issue becomes crystal clear. One patient, previously undiagnosed with diabetes, recounted how her free clinic provided crucial care that kept her from multiple hospital visits. "Without the clinic, I wouldn’t have managed my health effectively," she shared. This sentiment echoes throughout communities relying on these free clinics.A Call to ActionThe challenges these clinics face are alarming and must not go unnoticed. As the healthcare landscape shifts, it is essential to advocate for increased support for free and charitable health clinics. Contributing toward private donations will help sustain their invaluable work and support the health of our communities. This crisis affects us all—taking action now can help ensure that these clinics continue to serve as essential resources for those in need.

Transform Clinical Workflows: Implementing Microsoft Dragon Copilot for Healthcare

Update The Revolution of Clinical Workflows with AI As healthcare institutions evolve, the implementation of Microsoft Dragon Copilot is set to revolutionize clinical workflows. Harnessing artificial intelligence, this tool amalgamates the powerful speech-to-text functions of Nuance’s Dragon with the enhancement capabilities inherent in Microsoft’s Copilot. For many providers, the center of attention is how efficiently they can manage clinical documentation while improving physician satisfaction. Understanding the Core Benefits of Dragon Copilot Microsoft acquired Nuance in 2021, rebranding Dragon as a leading solution for medical documentation. For practitioners, Dragon Copilot's most significant perk is its capability for transcription during patient encounters. Physicians can engage directly with patients, recording discussions instead of typing notes, which fosters a more interactive and personal healthcare environment. Beyond Transcription: Additional Functionalities Dragon Copilot doesn’t merely serve as a transcription assistant; it proactively alleviates the overwhelming burden of administrative tasks inherent in medical practice. From generating physician notes post-appointment to coding for billing and managing referrals, it’s engineered to streamline workflows. This translates into improved efficiency, empowering healthcare providers to devote more time to patient care. Preparing for Successful Implementation Implementing Dragon Copilot in hospitals is not merely about the technology; it requires a holistic approach that involves training staff and modifying existing workflows. Effective communication between IT teams and healthcare professionals is crucial to ensure that stakeholders understand the capabilities of Dragon Copilot while addressing any concerns regarding security and patient privacy. Future Insights into AI in Healthcare Looking ahead, the integration of Dragon Copilot embodies a larger shift towards AI-driven solutions in healthcare. With ongoing advancements in technology, the potential for further enhancements in patient care and operational efficiency is extensive. Staying informed and prepared to adapt to these technological innovations will be essential for healthcare facilities aiming to maintain a competitive edge.

Employers to Shift Healthcare Costs: Insights from Mercer’s Survey

Healthcare Costs on the Rise: What's Next for Employers?

Strategic Adaptation to Rising Costs

Concern Over Weight Loss Drug Costs

Emerging Trends and Future Considerations

Terms of Service

Privacy Policy

Core Modal Title