Employee health costs surpass $5,000 in 2026 due to rising medical expenses

In the United States, employee health costs are anticipated to surpass $5,000 in the next fiscal year following a report from Aon published earlier in 2025. This projection represents a significant increase from the total employee costs of $4,920 in 2025, reflecting a growth rate of approximately 5% compared to $4,662 in 2024. The report identifies a detailed breakdown of these rising costs, including $2,967 in employee premiums deducted from worker paychecks, equating to about $114 per biweekly pay period, and an additional $1,953 in projected out-of-pocket expenses for employees. Aon’s forecast highlights a broader trend in U.S. employer healthcare costs, which are expected to rise by 9.5% in 2026, reaching a total expenditure of over $17,000 per employee. This prediction aligns with findings from Mercer, another consulting firm, which reported an anticipated average increase of 6.5% in employer health benefit costs for 2026. Such increases mark the highest levels observed since 2010 and emphasize the ongoing escalation of healthcare expenses for employers and employees alike. The Aon report notes that its data derives from the Health Value Initiative database, encompassing contributions from over 1,000 U.S. employers and representing a workforce of approximately 7.7 million individuals. The rise in health costs is attributed to various factors, including a spike in the usage of high-priced GLP-1 weight loss medications and the growing prevalence of chronic health conditions among the American population. Conditions such as musculoskeletal disorders, cardiovascular diseases, and high-cost illnesses like cancer are putting further strain on healthcare resources and cost structures. As the cost burden continues to increase, employees at large corporations will begin to see changes during the open enrollment period, a designated time when they can select or modify their benefit plans for the upcoming year. Open enrollment typically commences in September and can extend into November, thereby necessitating timely decision-making from employees concerning their healthcare options and financial obligations. The implications of these rising health costs are significant, prompting concerns about employees' financial capabilities to manage their healthcare expenses as their share of costs increases.