Employers, workers face increasing health care costs

Summary :

– Employers expect a 10% rise in health benefits in 2026 after an 8% increase in 2025.

– GLP-1 and other specialty drugs are major drivers of costs.

– Retirement health care expenses continue to rise, with HSAs playing a key planning role.

Employers are bracing for a double-digit increase in health benefits costs next year on the heels of an 8% increase this year.

Organizations are projecting a 10% hike in 2026, according to new data from the International Foundation of Employee Benefit Plans (IFEBP), a nonprofit organization based in Brookfield, Wis., with 31,000 employer members.

High catastrophic claims and specialty prescription drug costs are fueling much of the rise, according to IFEBP’s survey. Employers also cited chronic health conditions and medical pro