Health-care inflation is fueling higher coverage costs, setting the stage for what could be the largest increase in health-care spending by large employers in 15 years.

Medical care costs in August rose 4.2% on an annualized basis, according to the Labor Department's Consumer Price Index, compared to an overall inflation rate of 2.9%. The cost of doctors' visits climbed 3.5%, while hospital and outpatient services jumped 5.3%.

Those price increases are contributing to higher health insurance costs for 2026. Consumers who don't qualify for government subsidies to buy health coverage on the Affordable Care Act exchanges could face double-digit premium increases for next year, according to early filings from insurers.

Workers with employer health coverage could also have to pay higher prem

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