economy
Before employers shift more healthcare costs to workers, they should ask hospitals a question
American employers are approaching an uncomfortable choice: absorb another large increase in healthcare costs or pass more of it on to workers. Mercer projects that employer health-benefit costs will rise 6.7% in 2026, the steepest increase in 15 years, pushing the average cost above $18,500 per employee. Nearly half of large employers expect medical plan changes in 2027 that will increase employees’ out-of-pocket costs.
TL;DR
- Employer health-benefit costs are projected to rise 6.7% in 2026, the steepest increase in 15 years.
- Nearly half of large employers anticipate increasing employees' out-of-pocket medical costs in 2027.
- Employers should demand greater operational accountability from healthcare providers regarding efficiency.
- Operational improvements in hospitals, such as better patient flow management, can lead to significant financial savings and avoid unnecessary expansions.
- Cincinnati Children's Hospital and The Ottawa Hospital achieved millions in savings and improved patient outcomes through operational changes.
- Employers have purchasing power and can negotiate for greater efficiency before accepting higher prices or additional capacity.
- Redesigned appointment operations at St. Thomas Community Health Center improved access to same- or next-day care.