https://www.axios.com/newsletters/axios-vitals-1a601330-c4a4-11f0-8254-7f338b157b12.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosvitals&stream=top

The average cost of covering a U.S. worker will exceed $18,500 next year, underscoring concerns about health care affordability and prompting benefit changes, according to a new Mercer survey.

Why it matters: 

The added costs will force tough tradeoffs for employers who’ve tried to maintain generous benefits in tight labor markets and be passed on to workers already reeling from inflationary pressure.

• The corporations are likely to offer more plan options, take steps to guide workers to high-performing providers and provide specialized health programs in areas like diabetes and fertility.

By the numbers: 

Higher drug spending, including on GLP-1 weight-loss medications, will drive up total health benefit costs an expected 6.7% in 2026, accounting for the highest increase in 15 years, Mercer said.

• The survey found that this year, the average cost of employer-sponsored coverage reached $17,496 per employee, a 6% increase that’s well above the rate of inflation and wage growth.
• A factor behind the increase was sharp growth in prescription drug spending, which rose 9.4% on average for large employers with 500 or more employees.
• 49% of large employers covered costly GLP-1 weight-loss drugs in 2025 — up from 44% in 2024.

What’s ahead: 

Corporations already are increasing the number of medical plans to pick from.

• More are pushing plans with smaller networks of providers, along with stand-alone programs designed to help employees better manage specific health conditions, Mercer said.