Corporate health insurance costs will rise towards 2026
Businesses and corporations that provide health insurance are facing the largest increase in health insurance costs in 15 years.
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Are you worried about rising medical costs next year? You’re not alone.
Nearly half of U.S. adults are worried they won’t be able to pay for their medical needs next year, according to a survey released Tuesday, Nov. 18 by West Health Gallup U.S. Medical Center. This is the highest level of concern about personal health care costs since West Health Gallup began tracking data in 2021.
Surveys show that 90% of adults believe Americans spend too much on health care for the quality they receive.
Two-thirds of households are dealing with high costs and affordability concerns, while some are being forced to take extreme measures. About 1 in 10 adults cut back on utility bills, skip meals, or drive less to pay for medical and drug costs. Additionally, 15% of adults borrowed money and rationed medicines because of the need for affordable health care.
Nationwide, three in 10 adults say they didn’t have a medical procedure, lab test, or other doctor-recommended test in the past year because they didn’t have enough money to pay the bill.
West Health officials said the survey quantifies Americans’ anxiety and struggle to pay for health care, as health care affordability is debated across the country in the wake of the federal government shutdown over Affordable Care Act health care costs and subsidies.
“We are on an unsustainable trajectory in terms of costs to individuals, families and communities,” said Timothy Rush, president of the West Health Institute, a nonprofit organization focused on aging and health care costs.
The West Health-Gallup survey includes national and state numbers based on more than 20 questions of about 20,000 people nationwide.
Almost half of Mississippi households skipped long-term care due to cost.
Affordability concerns vary widely by state. In Mississippi, 36% of adults said someone in their household was unable to afford prescriptions in the past three months. In Iowa, 12% of households were unable to pay for their medications.
In Mississippi, 46% of adults said a household member had skipped medical care because of cost, while in Massachusetts, 18% of households had skipped medical care.
Congress will decide next month whether to extend pandemic-era tax credits that make the Affordable Care Act, also known as Obamacare, more affordable for millions of Americans. If the credit is not extended, the pandemic tax credit will expire at the end of 2025, doubling the average cost of health insurance for more than 20 million Americans.
While Democrats and Republicans debate the fate of Obamacare’s pandemic tax credits, Congress is paying less attention to the finances of most working-age Americans who get health insurance through their employers. The average cost of employer-sponsored health insurance in 2025 will be about $17,500 per employee, an increase of 6% from a year ago, outpacing inflation and wage increases, according to a study released Nov. 18 by benefits consultant Mercer.
Employers expect health insurance costs to rise even faster in 2026. Mercer’s project costs are expected to exceed $18,500 per employee next year.
