Author – Natalie Jenkins, Account Executive – Horst Insurance
Employers across the country are once again facing an uncomfortable reality: health care costs are rising at a pace not seen in more than a decade. According to Mercer’s 2025 National Survey of Employer-Sponsored Health Plans, total health benefit cost per employee is projected to increase 6.5% in 2026, marking the largest jump in 15 years. If employers did not make any changes to their current plans, the overall average increase would have been nearly 9%.
For many organizations, this trend puts growing pressure on budgets, workforce strategy, and employee satisfaction. Employers can no longer afford to view benefits as a passive expense. Instead, they must rely on a strategic trusted advisor—one who can actively market benefits, implement cost-containment strategies, educate employees on smart health care consumerism, and advocate on their behalf.
What’s Driving Health Care Costs Higher?
The projected increases for 2026 are being fueled by several converging factors. Employers surveyed by Mercer cited:
- Rising rates of cancer diagnoses and the escalating cost of advanced treatments
- Growing pharmacy spend, particularly the high utilization and expense of GLP-1 medications for weight loss
- An increase in chronic and complex medical conditions
- Expanded use of mental health services as access improves and stigma declines
From Benefits Vendor to Strategic Partner
In this environment, employers need more than a broker who simply renews plans once a year. The role of today’s benefits broker must evolve into that of a strategic partner—one who understands both the data and the options available to employers.
An effective broker helps employers navigate rising costs by providing clear insights into claims trends, utilization patterns, and opportunities for improvement.
Cost Containment Requires Strategy
With 59% of employers planning to implement cost-reduction measures in 2026, up sharply from 44% just two years ago, cost containment is now a priority rather than an option. However, reducing costs does not have to mean simply shifting expenses to employees.
A trusted benefits advisor can help employers explore smarter strategies, such as:
- Offering multiple plan designs to meet diverse employee needs
- Leveraging network and provider-based pricing differences
- Evaluating pharmacy benefit management strategies
- Using data to target the true drivers of cost rather than applying broad methods
Done correctly, these approaches can slow cost growth without undermining employee trust or access to care.
Educating Employees
One of the most underutilized tools in managing health care costs is employee education. Confusing benefit designs and unfamiliar terminology often lead employees to make decisions that unintentionally drive higher costs for themselves and the organization.
A strong broker partner prioritizes education—helping employees understand how to:
- Choose the most cost-effective plan for their situation
- Use in-network and high-value providers
- Compare costs for common services
- Take advantage of preventive care and wellness resources
When employees become informed health care consumers, they are more confident in their choices, more appreciative of their benefits, and better equipped to manage their own health spending.
Advocacy Matters
As benefit plans become more complex and costs rise, employees increasingly need someone in their corner. A trusted advisor who acts as an advocate—assisting with claims issues, provider access challenges, and benefit questions—adds tangible, day-to-day value that goes far beyond renewal negotiations.
From the employer’s perspective, advocacy reduces internal HR burden and improves the employee experience. From the employee’s perspective, it reinforces trust that their employer truly cares about their well-being.
Looking Ahead
The data is clear: health care costs are not stabilizing anytime soon. With projections from Mercer, the Business Group on Health, and PwC all pointing to continued increases in 2026, employers must take a proactive stance.
Now more than ever, partnering with the trusted benefits advisor can make the difference between reacting to rising costs and strategically managing them. Employers who invest in expert guidance, thoughtful cost-containment strategies, employee education, and active advocacy will be better positioned to weather the challenges ahead—while continuing to offer benefits that attract, retain, and support their workforce.
