Market commentator The Kobeissi Letter warned that the surge in U.S. health insurance costs shows no signs of slowing, signaling growing financial pressure on both employers and workers.

Health Costs Surge In a post on X on Sunday, The Kobeissi Letter cited a recent report from Mercer showing health benefit costs per employee are expected to rise 6.7% year-over-year in 2026 to at least $18,500, marking the biggest annual increase in 15 years.

The Mercer report, released on June 11, found health insurers are also expected to raise the cost of employer group plans by more than 6% for the fourth consecutive year.

Nearly half of large U.S. employers are expected to raise deductibles, copays or other out-of-pocket costs for workers in 2027.

The Kobeissi Letter added that around 66% of large U.S. firms may increase monthly employee premium contributions next year, while workers who frequently visit doctors and fill prescriptions could see healthcare costs rise by as much as 8% year-over-year.