With costs expected to rise at twice the rate of inflation, both workers and organizations must prepare for higher premiums and increased cost sharing.
Open enrollment season is approaching, and workers may face sticker shock. According to a new Mercer analysis reported by CBS News (Aimee Picchi, October 20, 2025), employer-sponsored health insurance premiums are expected to increase 6% to 7% in 2026, outpacing inflation by more than double.
What the Numbers Show
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The average cost of single coverage is projected to reach $2,400 per year, while family coverage could climb to nearly $8,900 annually.
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Employers will spend more than $18,000 per employee to provide coverage.
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Workers typically cover 16% to 25% of total costs through payroll deductions.
With over 164 million Americans relying on employer-sponsored coverage, these changes will affect the majority of working households.
Why Costs Are Rising
Experts cite several key factors driving these increases:
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An aging workforce using more medical services.
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Higher provider wages and increased costs for medical goods.
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Greater demand for costly treatments such as new GLP-1 weight-loss medications.
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Market consolidation among insurers, reducing competition.
These pressures mean workers may also see higher deductibles and co-pays, as employers adjust plan designs to offset rising premiums.
The Bigger Picture
Health insurance costs in the U.S. are already twice as high as in other developed nations, even though health outcomes lag behind. The Peter G. Peterson Foundation and GAO point to the system’s complexity and lack of competition as key drivers of inefficiency and expense.
A KFF survey found that 40% of insured adults under 65 worry about affording their monthly premiums. For many, that means cutting back on essentials like groceries or family activities to keep up with coverage costs.
How American Exchange Can Help
As premiums rise, employers and healthcare organizations must balance affordability with comprehensive coverage. American Exchange helps organizations and patients navigate this challenge by:
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Simplifying enrollment and eligibility management for ACA, Medicare, and Medicaid coverage.
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Advising on cost-effective benefit options to reduce administrative strain and improve plan participation.
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Supporting 340B and premium assistance programs to help uninsured or underinsured patients maintain care.
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Providing compliance and strategic planning to align with CMS and marketplace requirements.
With the right strategy, organizations can maintain strong benefits and help employees stay protected even as healthcare costs rise.
Learn how we can help. Schedule a demo today at American Exchange.
Source citation:
CBS News. “Your health insurance premiums are set to jump in 2026, with costs rising twice as fast as inflation.” Aimee Picchi, October 20, 2025.
