07/24/2025

Survey Projects Rising Health Insurance Costs for Workers in 2025

Employer-sponsored health insurance premiums are expected to increase by approximately 6 percent in 2025, up from a 4.5 percent growth rate in 2024, according to a recent survey published by Mercer. The report signals continued upward pressure on health care costs for American workers in the year ahead.

Employers cited multiple factors driving the increase, including general inflation, rising hospital and prescription drug prices, and broader use of artificial intelligence in medical billing and claims systems. To help manage costs, many organizations are considering narrower provider networks, higher deductibles, and other plan design changes—while still working to offer competitive benefits in a tight labor market.

Despite these cost pressures, Mercer’s survey also found that many employers are expanding benefits in key areas such as mental health services, child and elder care support, and reproductive health access.

More details are available in Mercer’s 2026 Benefit Strategies Report, which outlines the trends shaping health benefit planning for the year ahead.