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

Update 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.