Rising health-care expenses as part of an overall increase in the cost of living are forcing some Americans — including higher earners — to make tough financial choices.
In 2026, employees could see their total health benefit cost increase by 6.7% on average, pushing the average cost per employee above $18,500, according to global consulting firm Mercer. It’s the steepest jump in 15 years, the firm said.
This year, premiums for families with employer-sponsored plans rose 6%, more than twice the rate of inflation, at 2.7%, and outpacing wage growth of 4%, according to KFF, a nonprofit health policy research firm. The vast majority of Americans, about 165 million people, including employees and their dependents, obtain health insurance through their employer.
It’s not only the cost of coverage that’s going up. Consumers are also using more medical services and prescriptions, experts say, contributing to higher health-care expenses.
“We’re getting older as a population. So there’s going to be ailments, there’s more heart disease, there’s more diabetes, all of those things are trending higher, hence additional usage,” said Kaleialoha Cadinha-Pua’a, CEO and chief investment officer of Cadinha & Company in Honolulu, which is ranked No. 15 on CNBC’s Financial Advisor 100 list for 2025.
