Cost-shifting dynamic driving demand
Mercer’s 2025 national survey of employer-sponsored health plans projects that health benefit costs per employee will increase 6.5% in 2026, the fastest increase in 15 years. Without changes to the plan, the average cost increase would have been closer to 9%. The survey covering more than 1,700 US employers found that 59% planned to make changes to cost-cutting plans in 2026, up from 48% in 2025 – with cost-shifting to workers as the primary mechanism. The Kaiser Family Foundation’s 2025 Employer Health Benefits Survey found that more than a third of covered U.S. workers already meet a single-coverage deductible of $2,000 or more. The Employee Benefit Research Institute found in November 2025 that employers view voluntary benefits as a way to help workers manage out-of-pocket expenses, and organizations without voluntary benefits reported higher group health insurance premiums and lower workforce productivity.