New report estimates 6.7% hike in average health benefit costs per employee
Employers in the United States are expanding their medical plans in a bid to make healthcare more affordable for employees in the wake of rising costs, according to a new report.
Mercer's National Survey of Employer-Sponsored Health Plans revealed that 67% of large organisations in the United States offered three or more medical plans at their largest worksite.
"We expect this trend will continue, as these newer plans tend to cost less and offer more affordable benefits to the plan member," said Tracy Watts, Mercer's US leader for healthcare policy.
"Employers have workforces with diverse needs. When employees choose the right plan for themselves, they can unlock savings."
The diversification of medical plans comes amid rising costs of employer-sponsored health insurance, according to the report.
In 2025, the average cost of employer-sponsored health insurance reached $17,496 per employee, a six per cent increase that is driven largely by the sharp growth in prescription drug spending.
Mercer warns that employers can expect a stronger hike for 2026, with an estimated 15-year high growth of 6.7% that will push average costs above $18,500 per employee.
Addressing the 'tough challenge'
Ed Lehman, Mercer's US Health and Benefits Leader, ackowledged that employers are in a challenging position, having to balance costs and making healthcare affordable.
"Employers want to minimise increases in paycheque deductions while ensuring employees across all pay levels can afford the care they need, when they need," Lehman said in a statement.
"It's a tough challenge, but there are ways that employers can make healthcare more affordable for employees."
This includes introducing new, non-traditional medical plan models that manage costs and address affordability in new ways, generally by using smaller networks of providers selected on the basis of cost and quality, according to Mercer.
In fact, it found that 35% are now offering at least one plan that directs employees to smaller networks of higher-performing providers.
Reducing health risks in the workforce
Other employers are also focusing on reducing health risks by providing specialised, stand-alone programmes to help employees with specific health conditions.
According to the findings, some employers are already offering a stand-alone specialised diabetes programme (32%). Others are offering a musculoskeletal programme (28%) and fertility programme (23%).
While Mercer's findings focus on US employers, employers across the world are facing similar pressures and have been advised to emphasise preventive care amid rising healthcare benefit costs globally.
In the Asia-Pacific region, a previous poll from WTW revealed that estimated healthcare benefit costs will rise by 14% in 2025, higher than the 2025 increase of 13.2%.
"Empowering employees to use healthcare benefits wisely to access services, emphasising the importance of preventive care to improve overall health outcomes is one of the actions that can be taken, said Fong Han Wei, Head of Health and Benefits at WTW, in a previous statement.
