Short answer: Costs are rising sharply. Employer health plan costs are projected up roughly 7–9% for 2026, and ACA Marketplace premiums rose more after enhanced subsidies expired, in some states 30% or more. The main drivers are medical inflation, specialty and GLP-1 drug costs, and the subsidy change.
2026 is a steep year for health costs. Employer-sponsored plan cost increases are projected in the high-single digits (roughly 7–9%), the largest in over a decade, driven by medical inflation, hospital prices, and pharmacy, especially specialty and GLP-1 drugs.
On the individual market, gross ACA premiums rose even more, and the expiration of enhanced subsidies (see the related FAQ) means many people feel a much larger increase in what they actually pay. Some states saw average gross rate increases above 30%, and a few carriers exited certain markets.
For employers, the response has been more cost-sharing, plan-design changes, pharmacy management, and growing interest in self-funding and ICHRA.
Sources
- KFF, Mercer, and Aon 2026 cost-trend surveys; Employee Benefits KB (Market Context). Figures are in flux. Verify current numbers before CE use.
Content history
Originally published: June 16, 2026
Last reviewed: June 16, 2026