By Divyadeep Singh

Copyright indiatimes

TIL CreativesA survey of more than 1,700 employers by benefits consultant Mercer suggests that the cost per employee was set to rise at an average of nearly 9% in 2026.

Bad news is awaiting all working-age American health insurance holders. All employees who have health insurance are likely to witness the biggest rate increase since 2010. A survey of more than 1,700 employers by benefits consultant Mercer suggests that the cost per employee was set to rise at an average of nearly 9% in 2026.A similar projection was made by consultant Aon, whose report claimed that health costs would rise 9.5% in 2026. The rising cost is expected to have an impact on the working people, as most of the employers in recent years have tried to shield employees from rising insurance costs, a USA Today article quoted Beth Umland, Mercer’s director of research for health and benefits, as saying.Why is rising cost a concern for working Americans?The bulk of the cost of health insurance of employees is usually paid by employers, but with costs expected to rise rapidly, “this might be a little bit of a catch-up year,” according to Umland. She also claimed that a majority of employers are expected to shift costs to workers.The Mercer survey has estimated that 59% of employers will make cost-cutting changes to their plans in 2026. If this becomes a reality, 6 in 10 employers will probably shift escalating health care costs to workers through higher deductibles and copayments.Live EventsCost will also rise for people who purchase their own health insurance Besides the working people receiving insurance from employers, a setback is also likely for all those Americans who purchase their own insurance. According to USA Today, costs are also rising at double-digit rates for those who purchase their own health insurance through the Affordable Care Act marketplace.Things can possibly go from bad to worse for over 4 million people, as they can end up losing their coverage if Congress does not extend the expiring COVID-19 pandemic-era tax credits that have made ACA plans more affordable for consumers.Why are health insurance costs rising?According to Mercer, overall health care costs are rising because hospitals, doctors, and drug companies have increased prices. The lucrative pay raises of health care workers such as nurses and X-ray techs in recent years have prompted many health providers to recoup by charging more money from employers and consumers.Sunit Patel, Mercer’s U.S. chief actuary for health and benefits, has said that people in the US are also using health care more often, which drives costs higher. “For the exact same service a year ago—a visit to the doctor—it is about 3% to 4% higher,” Patel said, as quoted by USA Today. “The rest is related to greater utilization of services,” he added.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onhealth insurance ratesrising healthcare expensesemployer health insurance costsemployee insurance cost burdenhealthcare cost increase 2026(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless