The expression “an apple a day keeps the doctor away” is both a common idiom and, given the way health insurance costs are trending, perhaps the most financially tenable health care plan in the U.S. right now.
That’s because in 2026, the price of health insurance is set to jump at a rate we haven’t seen in 15 years.
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A new survey of more than 1,700 organizations by the Mercer consulting firm found that, even after taking cost-cutting measures into account, the price tag on health benefits per employee is likely to rise 6.5% on average next year. The survey added that the number would be 9% on average if employers didn’t try to find a way to bring costs down [1].
A similar survey by the non-profit Business Group on Health pegged the increase at 7.6% after cost-cutting [2], while consulting firm Aon predicted an even heftier 9.5% spike [3].
Even just banking on the most conservative estimate, the uptick will mark the fourth straight year of price increases and the largest increase in health insurance costs since 2010 [4].
And, as Fortune noted, while some employers are looking for ways to pad the blow for employees, a common outcome is simply “raising deductibles and cost-sharing provisions, resulting in higher out-of-pocket costs for employees when they access care.”
Fortune added that this could also mean an increase of 6% to 7% on average in paycheck deductions in 2026 [5].
Why health insurance costs are climbing
There are numerous reasons for the increase in health insurance costs.
“Health benefit cost trend has two primary components — health care price and utilization. Right now, both are rising,” Sunit Patel, chief actuary for health and benefits at Mercer, said in a report on the company’s site [4]. He added that the rise of virtual health care — including behavioral health — is bumping up the usage numbers by removing “geographic barriers to care.”
The Wall Street Journal (WSJ) also points to higher prices for hospital stays and drugs, as well as the prevalence of ailments from cancer to heart conditions to joint issues in younger people [6].
“Diseases that we usually thought of as for elderly, we’re seeing more and more in a younger, working-age population,” said Kirk Roy, chief actuary at Blue Cross Blue Shield of Michigan.
In addition, Business Group on Health highlighted “an increase in the utilization of obesity medications,” with their own survey showing that number could rise another 15%. The non-profit adds that, to help keep costs down, the amount of employers covering GLP-1s like Ozempic for non-diabetes-related reasons “will stagnate,” with obesity needs subject to caveats like participating in weight management programs [2].
And then, of course, there’s good old inflation, which both Fortune and WSJ cite as another contributing factor in rising prices.
All of this comes as Americans deal with increasingly difficult financial decisions related to their health care. Kaiser Family Foundation polling from earlier this year showed that almost half of U.S. adults find it difficult to afford health care — including 36% who admitted to putting off needed health care treatments due to cost, and 21% that said the high price of a prescription caused them to skip filling it altogether [7].
Read more: Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
How to protect yourself from rising health insurance costs
Thankfully, there are some simple ways that you can help protect yourself — and your wallet — from the extra ding on your paycheck.
Opt for the HDHP/HSA combo
If you’re healthy and don’t expect to use your coverage much, consider a High Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA). This is one of the top recommended strategies for keeping health insurance costs down because it allows you to pay lower premiums while saving money for future health care costs.
Yes, the deductible is high — in 2026 the minimum annual deductible will be $1,700 for an individual and $3,400 for families (an increase of $50 and $100 respectively over 2025’s rates).
That said, the HSA will help cover your deductible, softening the financial hit. The 2026 HSA contribution limit will be $4,400 for individuals with an HDHP and $8,750 for families (up $100 and $200 respectively) [8].
But there’s more! Not only does the HSA roll over each year, you can also save on three tax breaks: the contributions, earnings and withdrawals are all either tax free or tax deductible [9].
Investors.com even suggests that, if you don’t end up dipping into your HSA, you could make it work even harder for you “by investing your money in investment funds like you do in your 401(k).” [10]
Pharmacy coverage is your friend
Remember the note about some employers no longer covering GLP-1s except for diabetes? CNBC suggests that those who need GLP-1s for weight loss “use self-service tools or talk to your open-enrollment team about the medications you take and the cost implications.”
It’s always best to vet all health insurance options to see which would work best for you, but opting for coverage that helps keep prescription costs down could, as one expert told CNBC, “drive significant differences in out-of-pocket costs.” [11]
In addition, Blue Cross advises asking your doctor about generic alternatives to name brand medications to save more money [12].
Preventative care for your body and budget
It might seem obvious, but preventative care is a key strategy in keeping insurance costs down.
In terms of your body, many experts suggest visiting your doctor and/or dentist for routine check-ups and taking advantage of health opportunities — like gym memberships — that your company might offer. As they say, “an ounce of prevention is worth a pound of cure” — not to mention the cost of a deductible.
When it comes to your budget, Investors.com suggests treating your health insurance payments like you would your cable bill or mortgage — learn what it will cost you and your family to maintain it and then make it part of your overall budget [10].
Wealth planner Tara Lawson added that “understanding what you and your family’s health costs are going to be is tremendously helpful in deciding which plan you’re going to choose, and how you will budget for it.”
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Article sources
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[1]. Mercer. “Employers prepare for the highest health benefit cost increase in 15 years”
[2]. Business Group on Health. “2026 Employer Health Care Strategy Survey: Executive Summary”
[3]. Aon. “Aon: U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026”
[4]. Mercer. “Employers are bracing for the highest health benefit cost increase in 15 years, a projected 6.5% increase in 2026, according to Mercer”
[5]. Fortune. “Your health insurance is about to go up by the biggest percentage in 15 years”
[6]. Wall Street Journal. “Health Insurance Costs for Businesses to Rise by Most in 15 Years”
[7]. Kaiser Family Foundation. “Americans’ Challenges with Health Care Costs”
[8]. Thomson Reuters. “IRS Announces 2026 HSA and EBHR”
[9]. TD Savings. “Understanding Health Savings Accounts”
[10]. Investors.com. “Health Care Costs Rise Again: How To Budget For 2025 Increases”
[11]. CNBC. “Open enrollment surprise: Expect health insurance premiums to be ‘highest in decades’ in 2025”
[12]. Pacific Blue Cross. “Ways to save on healthcare costs”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.