Latest news with #SurveyonHealthandBenefitStrategies
Yahoo
16-07-2025
- Health
- Yahoo
Here's why you might be spending more on health care next year
Battered by multiple years of high health care costs, employers are planning to shift more of the expense to workers in 2026, a new survey released Wednesday found. Just over half of employers are planning to adjust their health insurance offerings to increase staffers' share of the cost, such as instituting higher deductibles or annual out-of-pocket maximums, according to Mercer's Survey on Health and Benefit Strategies for 2026. The tight labor market and rising cost of living in recent years had made companies more reluctant to add to workers' financial burden, Mercer said. Some 45% of employers reported in 2025 that they would shift more costs to staffers. 'Employers are thinking, we're at a point where we can't do another year of not passing along some of the cost increases,' said Beth Umland, director of research at Mercer's Health and Benefits business. Companies expected their health benefits expenses to jump by nearly 6% this year, after experiencing a 4.5% increase in 2024. Costs will likely rise at an even higher rate next year, driven in part by patients' increased usage and doctors using artificial intelligence to more accurately bill insurers, said Sunit Patel, US chief health actuary at Mercer. Another area of cost concern is coverage of anti-obesity GLP-1 medications, which are very popular but very expensive. Nearly two-thirds of companies with 20,000 or more workers provided such coverage in 2024, while 44% of employers with 500 or more workers did. The pace of employers adding such coverage is likely to slow in 2026, Umland said. Companies may be reluctant to stop providing the benefit but may narrow eligibility or require more documentation — making it more difficult for workers to access it, Patel said. Meanwhile, employers remain committed to providing mental health services for staffers, the survey found. More are offering onsite Employee Assistance Program counseling services — some 35% will do so next year, up from 29% this year. They are also providing more sessions, moving to six to eight sessions, rather than the traditional three to five. Also, as employers increasingly require staffers to return to the office, companies are more interested in providing child care or elder care benefits, Mercer found. Some 54% of large employers provide — or will offer next year — at least one child care resource, including a platform to search for child care, access to backup child care services or tuition discounts. Likewise, 58% of large employers offer or plan to provide at least one type of elder care benefit, including grief counseling, a platform to search for elder care or access to backup elder care services. Some 59% of employers will offer at least one resource to support women's reproductive health, including lactation support, high-risk pregnancy and pre-conception family planning. Employees will find out more details about their health care benefits for the coming year during the annual open enrollment period, which typically occurs in the fall.
Business Wire
16-07-2025
- Business
- Business Wire
As health benefit costs continue to surge, Mercer's research reveals that employers face tough decisions regarding their 2026 benefit offerings
NEW YORK--(BUSINESS WIRE)-- Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released its Survey on Health and Benefit Strategies for 2026. According to the survey, more employers will likely reduce benefits in 2026 as they try to control fast-growing health benefit costs. In recent years, the tight labor market and concerns about healthcare affordability have made employers reluctant to reduce the value of health benefits by raising deductibles or making other changes that shift more responsibility for healthcare cost to employees. But this year, more employers seem likely to use this tactic to slow health plan cost growth. Half (51%) of large employers (those with 500 or more employees) say they are likely or very likely to make plan design changes in 2026 that would shift more cost to employees, such as raising deductibles or out-of-pocket maximums. That's up from 45% in last year's survey. 'Employers project average health benefit costs to grow by nearly 6% this year, and 2026 may be even more challenging from a cost perspective,' said Ed Lehman, Mercer's US Health & Benefits Leader. 'While short-term cost containment actions might be needed to address current budget realities, we also see some employers using longer-term strategies, such as offering narrow network plans, that emphasize high-quality, high-value care. These strategies may improve health outcomes or make healthcare more affordable for employees." Some employers will pursue other strategies to slow cost growth. According to the survey, 35% of large employers will offer a non-traditional medical plan option in 2026 that seeks to provide employees with higher-quality, more cost-efficient care. Employers offer these alternative plans to provide choices to employees with a range of medical and financial needs. Variable copay plans are one example and typically offer no or low deductibles and set copayments for services based on individual providers' fees. These copays are fixed and communicated up front, giving members the opportunity to select lower-cost providers. The survey found that among the 6% of large employers currently offering a variable copay plan, 28% of their covered employees, on average, chose to enroll in them in 2025. Weight-loss medication cost is a top concern Sharp growth in the utilization of glucagon-like peptide 1 (GLP-1) drugs for the treatment of diabetes and obesity is having a significant impact on prescription drug benefit costs. While employers have long covered GLP-1 drugs for diabetes, fewer than half (44%) of large employers cover the drugs specifically approved to treat obesity. Given the high cost of these drugs (about $1,000 per month per patient, not counting manufacturers' rebates, which vary), and the large number of plan members that could potentially benefit from them, managing this cost is by far the top priority in pharmacy benefits among survey respondents, with 77% saying it is extremely or very important. 'While the trend over the past couple of years has been to add coverage for GLP-1s approved for weight-loss, some employers facing large cost increases in 2026 may feel this coverage is out of reach,' says Alysha Fluno, Mercer's Pharmacy Innovation Leader. 'Employers are weighing the immediate costs of covering these drugs against the potential for generating savings down the road once their workforce's health improves.' More broadly, some employers are evaluating new approaches to providing and managing the costs of pharmacy benefits. Well over half of large employers (61%) are now actively exploring some type of alternative to standard pharmacy benefit contracts that would potentially provide greater clarity about the cost of drugs or specific services offered by pharmacy benefit managers. Well-being and mental health continue to be a priority Employers remain committed to helping employees manage stress and build coping skills, which may help prevent the onset of more serious mental health issues. More than 75% of large employers will offer digital stress management or resiliency resources in 2026, such as mindfulness and meditation apps, or apps grounded in cognitive behavioral therapy. Half (51%) will offer in-person or live online resources for stress management and resiliency, such as individual or group training sessions or coaching. Employers are also providing training for managers on how to recognize employees who are struggling with their mental health, offer support and direct them to resources. This type of training is increasingly recognized as a strategy for fostering a healthy workplace. Nearly 40% of all large employers surveyed – and 60% of those with 20,000 or more employees – conduct mental health training for managers. These efforts may be a response to a growing need. According to Mercer's research, nearly half (45%) of US employees feel stressed most days at work. About Mercer's Survey on Health and Benefit Strategies for 2026 This study includes 711 US-based organizations (504 organizations with 500 or more employees and 207 organizations with fewer than 500 employees). The study was fielded between April 8 and April 25, 2025. Click here to learn more. About Mercer Mercer, a business of Marsh McLennan (NYSE: MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit or follow on LinkedIn and X.
Yahoo
16-07-2025
- Business
- Yahoo
As health benefit costs continue to surge, Mercer's research reveals that employers face tough decisions regarding their 2026 benefit offerings
NEW YORK, July 16, 2025--(BUSINESS WIRE)--Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released its Survey on Health and Benefit Strategies for 2026. According to the survey, more employers will likely reduce benefits in 2026 as they try to control fast-growing health benefit costs. In recent years, the tight labor market and concerns about healthcare affordability have made employers reluctant to reduce the value of health benefits by raising deductibles or making other changes that shift more responsibility for healthcare cost to employees. But this year, more employers seem likely to use this tactic to slow health plan cost growth. Half (51%) of large employers (those with 500 or more employees) say they are likely or very likely to make plan design changes in 2026 that would shift more cost to employees, such as raising deductibles or out-of-pocket maximums. That's up from 45% in last year's survey. "Employers project average health benefit costs to grow by nearly 6% this year, and 2026 may be even more challenging from a cost perspective," said Ed Lehman, Mercer's US Health & Benefits Leader. "While short-term cost containment actions might be needed to address current budget realities, we also see some employers using longer-term strategies, such as offering narrow network plans, that emphasize high-quality, high-value care. These strategies may improve health outcomes or make healthcare more affordable for employees." Some employers will pursue other strategies to slow cost growth. According to the survey, 35% of large employers will offer a non-traditional medical plan option in 2026 that seeks to provide employees with higher-quality, more cost-efficient care. Employers offer these alternative plans to provide choices to employees with a range of medical and financial needs. Variable copay plans are one example and typically offer no or low deductibles and set copayments for services based on individual providers' fees. These copays are fixed and communicated up front, giving members the opportunity to select lower-cost providers. The survey found that among the 6% of large employers currently offering a variable copay plan, 28% of their covered employees, on average, chose to enroll in them in 2025. Weight-loss medication cost is a top concern Sharp growth in the utilization of glucagon-like peptide 1 (GLP-1) drugs for the treatment of diabetes and obesity is having a significant impact on prescription drug benefit costs. While employers have long covered GLP-1 drugs for diabetes, fewer than half (44%) of large employers cover the drugs specifically approved to treat obesity. Given the high cost of these drugs (about $1,000 per month per patient, not counting manufacturers' rebates, which vary), and the large number of plan members that could potentially benefit from them, managing this cost is by far the top priority in pharmacy benefits among survey respondents, with 77% saying it is extremely or very important. "While the trend over the past couple of years has been to add coverage for GLP-1s approved for weight-loss, some employers facing large cost increases in 2026 may feel this coverage is out of reach," says Alysha Fluno, Mercer's Pharmacy Innovation Leader. "Employers are weighing the immediate costs of covering these drugs against the potential for generating savings down the road once their workforce's health improves." More broadly, some employers are evaluating new approaches to providing and managing the costs of pharmacy benefits. Well over half of large employers (61%) are now actively exploring some type of alternative to standard pharmacy benefit contracts that would potentially provide greater clarity about the cost of drugs or specific services offered by pharmacy benefit managers. Well-being and mental health continue to be a priority Employers remain committed to helping employees manage stress and build coping skills, which may help prevent the onset of more serious mental health issues. More than 75% of large employers will offer digital stress management or resiliency resources in 2026, such as mindfulness and meditation apps, or apps grounded in cognitive behavioral therapy. Half (51%) will offer in-person or live online resources for stress management and resiliency, such as individual or group training sessions or coaching. Employers are also providing training for managers on how to recognize employees who are struggling with their mental health, offer support and direct them to resources. This type of training is increasingly recognized as a strategy for fostering a healthy workplace. Nearly 40% of all large employers surveyed – and 60% of those with 20,000 or more employees – conduct mental health training for managers. These efforts may be a response to a growing need. According to Mercer's research, nearly half (45%) of US employees feel stressed most days at work. About Mercer's Survey on Health and Benefit Strategies for 2026 This study includes 711 US-based organizations (504 organizations with 500 or more employees and 207 organizations with fewer than 500 employees). The study was fielded between April 8 and April 25, 2025. Click here to learn more. About Mercer Mercer, a business of Marsh McLennan (NYSE: MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit or follow on LinkedIn and X. View source version on Contacts Media contact:Cassie LenskiMercer+1 214 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
