Soaring health care costs raise affordability concerns

Employers and workers are preparing for the highest health benefit cost increase in 15 years. Mercer’s annual survey finds that employer-sponsored health plans hit $17,496 this year, a 6% hike from 2024. Prescription drug spending surged 9.4%, partially due to wider coverage of GLP-1 weight loss drugs. The survey projects another 6.6% jump in 2026, pushing costs past $18,500 per employee. The report notes that “increases of this magnitude are heightening concerns about health care affordability.” A 2024 Mercer survey of more than 2,000 U.S. workers reported that 28% of those with household incomes at or below the median were not confident they could afford care.