New Mercer survey shows employers may reduce health benefits in 2026

To combat rising health care costs, employers may want to reduce health care benefits in 2026, a new survey by consulting firm Mercer shows.

The survey released Wednesday, showing that 51% of large employers (500 employees) said they would or would likely make changes, shifting more costs to employees. This includes increasing deductibles or out-of-pocket maximums. In last year's survey, 45% of employers said so.

Mercer's survey was conducted in April and included responses from 711 organizations in the U.S., including 504 organizations, including 500 or more employees and 207 organizations with fewer than 500 employees.

The survey also found that employers are considering other strategies to reduce costs. For example, 35% of large employers will offer non-traditional healthcare plan options in 2026, such as variable Copay plans, where “individual providers and members can see these amounts before making an appointment”. Of the 6% of the large employers currently offering variable Copay plans, 28% of employees choose to recruit them in 2025.

“This year, the average health benefits costs for employers programs will grow nearly 6% this year, and 2026 may be more challenging from a cost perspective,” Ed Lehman, Mercer’s U.S. health and welfare leader, said in a statement. “While short-term cost-retaining actions may be needed to address current budget reality, we also see some employers using long-term strategies such as providing narrow network plans that emphasize high-quality, high-value care. These strategies may improve health outcomes or make health care more affordable for employees.”

Mercer also found that employers’ weight loss medication costs are as serious as GLP-1. About 44% of large employers cover obesity drugs, and 77% say the cost of managing GLP-1 is very important.

“While the trend in the past few years has been increasing coverage of GLP-1 approved for weight loss, some employers facing a significant increase in cost may feel that coverage is out of reach in 2026,” said Alysha Fluno, pharmacy innovation leader at Mercer. “Employers are weighing the immediate cost of covering these drugs, and the potential to save on the road once the health of the workforce improves.”

Additionally, 61% of large employers are considering a replacement for traditional pharmacy benefits contracts, which will provide greater transparency on the cost of medication and PBM services.

Other findings from the investigation include:

• About three-quarters of the big employers plan to provide digital stress management or resilience resources in 2026. This includes applications for mindfulness, meditation and cognitive behavioral therapy.
• More than half of employers plan to provide in-person or real-time online resources to manage stress, such as training or coaching.
• More and more employers are training their managers to determine when employees are struggling with mental health challenges. About 40% of the big employers say they are doing mental health training with their managers.

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