Health insurance premiums under employer plans are expected to rise 6 to 7 percent in 2026, a Mercer survey shows. Even with benefit redesigns, employer costs are projected to grow 6.5 percent, and nearly 9 percent without changes, Reuters reported.

The surge is driven mainly by expensive specialty drugs, higher demand for medical and mental health care, and inflation in healthcare wages. To manage the burden, many employers are revising coverage, increasing cost-sharing, and expanding access to virtual and behavioral health services.