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

Unlocking the Power of Clinical Trials for Cancer Treatment

Update Understanding Clinical Trials in Cancer Care In the realm of cancer treatment, clinical trials serve as a crucial bridge between standard treatment protocols and emerging therapeutic innovations. These trials are essential in healthcare, aiming to evaluate the effectiveness and safety of new drugs and interventions. As many cancer patients consider participating in these trials, it’s important to demystify the process and illustrate the significant impact they can have.In Mejorando la atención del Cáncer a través de Ensayos Clínicos, the discussion dives into the significance of clinical trials, exploring key insights that sparked deeper analysis on our end. Why Clinical Trials Matter Clinical trials not only provide patients access to cutting-edge treatment options but also foster advancements in medical science. Every current standard treatment was once part of a clinical trial, underscoring their importance in shaping effective cancer therapies. A personal testimony can highlight this: a cancer survivor shares that participating in a trial opened doors to a treatment that showed promise when other methods seemed daunting. Addressing Misconceptions About Clinical Trials Many individuals harbor misconceptions about clinical trials, often fearing they may be treated like "guinea pigs". In reality, rigorous safety protocols ensure that by the time a drug reaches human testing, it has already undergone extensive research. Patients should feel empowered to learn more about what participation entails, including the comprehensive medical oversight they will receive. Each participant’s involvement contributes significantly not just to their own health journey, but to creating better outcomes for future patients. The Importance of Diversity in Clinical Trials Diverse participation in clinical studies is paramount. It ensures that research findings are relevant and applicable to a wider population. This inclusivity helps tailor treatments to meet the varying needs of all patient demographics, ultimately benefiting public health as a whole. Emotional Support and Reflection Navigating a cancer diagnosis is an emotional journey filled with ups and downs. Sharing personal experiences through forums or support groups can provide solace to those affected. Many survivors find empowerment in discussing their paths and the healthcare decisions they made, especially regarding clinical trials. Connecting on this level can bolster resilience and offer encouragement to others facing similar battles. Making Informed Choices About Treatment Participation in clinical trials can bring hope and options to patients seeking alternatives when conventional treatments don’t yield the desired results. It is vital for patients to discuss these options with their healthcare providers to better understand the potential benefits and risks involved. As we reflect on the experiences shared in Mejorando la atención del Cáncer a través de Ensayos Clínicos, the insights gained highlight the ongoing need for awareness and understanding of clinical trials in cancer care. These trials are not just about immediate treatment— they pave the way for future generations to have better health outcomes.

ACOs in Medicare Shared Savings Program Saved $2.4B in 2024: Here's Why It Matters

Update ACOs Proving Their Value in MedicareIn a remarkable achievement, Accountable Care Organizations (ACOs) participating in the Medicare Shared Savings Program saved Medicare an impressive $2.4 billion in 2024. This achievement highlights not only the financial efficacy but also the ongoing evolution of healthcare delivery models aimed at optimizing patient care.Significant Performance PaymentsOut of the 476 ACOs in the Shared Savings Program, 75% earned $4.1 billion in performance payments, indicating a strong performance and commitment to high-quality care. The success rate represents the highest share of ACOs receiving these payments since the program's inception in 2012.Improving Patient OutcomesIn addition to financial metrics, ACOs significantly improved patient health outcomes. For instance, the percentage of beneficiaries with controlled high blood pressure rose from 77.8% in 2023 to 79.49% in 2024. Moreover, reports indicated better management of hemoglobin A1c levels, a critical factor for diabetes care.Challenges Faced by Some ACOsWhile many ACOs excelled, not all achieved savings. Sixteen organizations collectively owed $20.3 million in shared losses, which serves as a reminder of the ongoing challenges within the healthcare landscape. Such disparities underscore the need for continuous adjustment and responsiveness within ACO frameworks.Quality Over Quantity: ACOs vs. Traditional GroupsACOs have consistently outperformed similar physician groups on various quality measures. For instance, they led the way in depression screenings and follow-up plans, scoring 53.5% compared to 44.4%. This success demonstrates the effectiveness of focused and coordinated healthcare delivery.Future Predictions for the Shared Savings ModelThe National Association of ACOs has expressed optimism about the continued success and sustainability of ACOs within the Medicare landscape. As healthcare continuously evolves, ACOs’ ability to innovate will be crucial in adapting to emerging challenges while ensuring that patients receive the best possible care.As digital health innovators and healthcare IT professionals, staying informed about these trends is vital. The future of healthcare hinges on data-driven insights and responsive care models that prioritize patient experience.

Mixed Review on House Bill: NIH Funding Secured, CDC Cutbacks Ahead

Update House Bill: A Double-Edged Sword for Health Funding This week, House appropriators are setting the stage for funding discussions, as new legislation on the Department of Health and Human Services (HHS) budget moves forward. While it promises to preserve the $48 billion funding for the National Institutes of Health (NIH), a significant departure from President Trump's proposal for a 40% cut, it simultaneously slashes funding for the Centers for Disease Control and Prevention (CDC) and other critical health agencies. Maintaining NIH Integrity Amid Budget Conflicts The bill's decision to reject the proposed reorganization of NIH is a win for researchers. The NIH is vital for biomedical research funding in the U.S., and keeping all 27 institutes and centers intact ensures that ongoing projects won't be disrupted at a time when health-related studies are more critical than ever. The Unaddressed Proposal by RFK Jr. Notably absent from the legislation is the Administration for a Healthy America, a proposal put forth by Health Secretary Robert F. Kennedy Jr. This leaves many wondering about the future of health reform and oversight in the face of the ongoing pandemic and other public health challenges. Why These Changes Matter As the September 30 government funding deadline approaches, the implications of these budget cuts stretch far and wide. Deep cuts to agencies like the CDC—responsible for disease prevention—could have dire impacts on public health initiatives. Advocates for health funding warn that without adequate resources, the country could face significant setbacks in combating existing health threats and preparing for future ones. The Bigger Picture While consolidating NIH funding may seem beneficial in the short term, the decline in resources for organizations like the CDC raises serious concerns about the nation's ability to respond effectively to health crises, like the COVID-19 pandemic. Stakeholders across the health community need to advocate for a more balanced approach in budget negotiations, ensuring that both research and public health initiatives receive necessary funding. Moving Forward: What Can You Do? Engaging with your local representatives, voicing your concerns, and staying informed about health funding decisions can make a difference. As these discussions progress, it's crucial to maintain a dialogue regarding the importance of supported health initiatives.

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