Healthcare expenses in the United States are reaching new heights, placing significant financial strain on workers and families. For 2026, employer-sponsored insurance premiums are projected to increase by around 10%, marking the sharpest rise in more than a decade. At the same time, individuals enrolled in Affordable Care Act plans may see their premiums jump by more than 75% as temporary subsidies from the pandemic expire.
How Insurers Drive Costs
Major insurance providers, including UnitedHealth Group, Cigna, and CVS Health, are a key factor behind rising healthcare bills. By controlling pharmacy benefits and negotiating drug prices, insurers influence the overall costs borne by employers and patients. Their strategies, such as prioritizing medications with high rebates and maintaining exclusive agreements, have been linked to higher drug prices. Federal authorities have examined these practices for potential anti-competitive effects.
Pharmaceutical Prices Add Pressure
Drug manufacturers are contributing heavily to the financial burden. Treatments like GLP-1 medications for weight management and diabetes can cost up to $1,000 per month. Although these drugs provide important health benefits, their steep pricing, combined with the expense of new cancer therapies, is a major driver of overall healthcare inflation.
Employers Shape Coverage and Costs
Employers, who offer health insurance to more than 150 million Americans, play a significant role in determining out-of-pocket expenses. Many companies respond to rising costs by increasing premiums, deductibles, and copays or moving staff to high-deductible plans. Some have reduced coverage or cut certain benefits, shifting a larger share of costs onto employees.
The Bigger Picture
The surge in healthcare costs stems from a combination of insurer practices, high-priced medications, and employer strategies. Workers are left bearing the brunt of these increases, underscoring the urgent need for coordinated reforms to ensure healthcare remains accessible and affordable across the country.
