What's Happening?
Healthcare costs in the United States are projected to increase by 9.6% in 2026, according to WTW's 2026 Global Medical Trends report. This rise is marginally lower than the 9.7% increase experienced in 2025 but remains significantly higher than the 7.6%
increase in 2024. The report highlights that globally, the average cost of health benefits is expected to rise by 10.3%. The primary drivers of these increases include new medical technologies, regional pressures on pharmacy and outpatient services, and global structural factors. Cancer remains the most expensive diagnosis, with a noted increase in cases among individuals under 40.
Why It's Important?
The continued rise in healthcare costs poses significant challenges for both employers and employees in the U.S. With family premiums for employer-sponsored health insurance averaging $26,993, the financial burden on workers and companies is substantial. Employers may need to adjust their health plans, potentially shifting more costs to employees. This trend could impact employee satisfaction and retention. Additionally, the high cost of healthcare may influence public policy discussions around healthcare reform and affordability, as stakeholders seek sustainable solutions to manage these rising expenses.
What's Next?
Employers are likely to explore strategies to mitigate the impact of rising healthcare costs. This may include investing in employee education on health benefits, promoting prevention programs, and optimizing mental health coverage. Policymakers may also face increased pressure to address healthcare affordability and access, potentially leading to legislative initiatives aimed at controlling costs. The role of new technologies in healthcare will be closely monitored, as they present both cost challenges and opportunities for long-term savings.
