Health insurance to shoot up to 7% for workers next year, survey

US workers could face health insurance cost hikes next year, with employers preparing for the steepest increase in 15 years, according to Mercer’s National Survey of Employer-Sponsored Health Plans.

Premiums are expected to climb by around 6–7% on average, and many companies will pass expenses to workers through higher deductibles, copays, and out-of-pocket costs.

The surge is expected to be driven by rising prices for medical services, higher usage, and expensive treatments such as cancer care and weight loss drugs. Mental health services are also contributing to cost growth as demand continues to rise.

Nearly 59% of employers plan to make cost-cutting changes next year, up from 44% in 2024.

According to Mercer’s US chief of health and benefits, future costs could rise even further due to tariffs and other policies under President Donald Trump’s “big, beautiful bill,” which may increase the number of uninsured Americans.