A Call to Employers: Tackling Rising Healthcare Costs

If you’re an employer offering health insurance, you already know that it is getting harder every year to balance cost, coverage, and care. The challenge isn’t just about managing your budget; it’s about protecting the health, productivity, and trust of the people who make your business work.

Between skyrocketing premiums, narrower provider networks, and rising employee frustration, many organizations are finding themselves caught in a perfect storm. And when your team is struggling with denied claims, delayed care, or medical debt, that stress inevitably shows up at work — in morale, in performance, and in retention.

The good news? You’re not powerless here. In fact, your leadership and your employees’ experiences together can be a real force for change.

And yes, in my role as a healthcare consultant, I would be honored to join your team! Just reach out to me directly to share your pain points. A fresh perspective can work wonders!

Why Your Role Matters

There are three big reasons why employers need to take an active role in this conversation:

• Employee satisfaction and retention: When healthcare feels unpredictable or unaffordable, employees feel anxious — and that anxiety fuels turnover and disengagement.

• Productivity and performance: When people delay care because of cost or access, their health suffers. And when their health suffers, so does their work.

• Cost control and influence: As the payer — or partner — in your company’s healthcare strategy, you have leverage. You can demand better value, better transparency, and better access for your people.

  
  

The Urgency: Cost Pressures Are Rising

Mercer’s latest research shows just how pressing this has become: health benefit costs are expected to climb about 6.5% in 2026, the biggest jump in 15 years. If employers do nothing, that number could be closer to 9%.

After a decade of relatively steady increases around 3% per year, we’re now in a different environment — one driven by rising provider prices, greater utilization, and increasing demand for comprehensive benefits. In short: costs are accelerating, and doing nothing isn’t an option.

Key Challenges Facing Employers and Employees

Before you can act, it helps to see the landscape clearly. Here’s what many companies are up against:

• Premiums are climbing while coverage quality stagnates.

• Employees are facing higher out-of-pocket costs, more denied claims, and tougher access to care.

• Provider networks keep shrinking, making it harder to find in-network specialists.

• High deductibles and co-pays are pushing people to skip or delay needed care.

• Insurer-driven medication switches disrupt treatment plans and continuity of care.

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According to Mercer, many employers are responding by shifting more costs onto employees through higher deductibles or co-pays. This may ease short-term budget pressure, but can erode long-term trust and well-being. That’s why it’s so important to take a more strategic, employee-centered approach.

How Employers Can Take Action

Here are six ways you can take meaningful, practical steps — right now. And it isnt too early to start planning for 2027!

1. Engage with Your Insurance Providers

Start the conversation early — not just at renewal time. Negotiate for better rates, broader networks, and more transparent pricing. Push back on arbitrary increases and hold your partners accountable for the value they deliver. Make sure your company CFO or COO is very engaged in these conversations.

Tip: Set quarterly check-ins with your broker and insurer to review claims trends and employee feedback.

2. Support Employee Advocacy

Listen to what your people are saying. Encourage them to share their healthcare experiences (anonymously if needed) and use those insights to improve your plan design or insurer relationship.

Tip: Anonymous surveys or small focus groups can reveal issues that data alone won’t show.

3. Engage Policymakers

Your business story matters. Reach out to local, state, and federal representatives. Join employer advocacy coalitions. When you share real-world experience like rising premiums, limited networks, & delayed care, you make policy more personal and more actionable.

Tip: Policymakers respond best to specific, relatable examples from the business community.

4. Partner with Healthcare-Reform Organizations

You don’t have to go it alone. Collaborate with groups focused on healthcare transparency and reform. Share your data, join roundtables, or participate in joint initiatives — every voice adds momentum.

Tip: Consider partnerships that go beyond funding, because visibility and collaboration often carry more weight.

5. Educate and Empower Your Employees

Help your people get the most from their coverage. Host sessions or webinars to explain plan benefits, claims processes, or how to access care efficiently. Engage your broker or healthcare consultant to support these programs — they often have ready-to-use resources.

Tip: Use a mix of formats — quick videos, FAQs, and town halls — so everyone can access the information in a way that fits them.

6. Evaluate Your Broker Relationship

Your benefits broker is a strategic partner, so make sure they’re acting like one. Ask for clear data, transparent compensation, and plan performance reports. Involve your finance team to analyze cost drivers and spot trends early.

Tip: Establish clear KPIs — for example, reductions in cost growth, employee satisfaction gains, or network improvements.

Be Part of the Solution

You’re not just purchasing a health plan — you’re shaping part of the healthcare system itself. The choices you make ripple out to your employees, your company culture, and even the broader market.

With costs rising and systems under strain, your proactive stance matters more than ever. By listening, negotiating, and advocating, you can help create a model where healthcare is accessible, affordable, and sustainable, for employers and employees alike.

Final Thoughts

Healthcare challenges are complex, but employers have more influence than they often realize. Whether you’re leading a small business or a large organization, you can make a difference — in how your teams experience healthcare, and in how the system evolves.

So as you look ahead:

• Recognize your role and the urgency.

• Understand the real challenges like cost, access, quality, and experience.

• Apply the six actions above as a framework for engagement.

• Keep measuring and adapting! Healthcare will keep changing, and so must we.

  
  

Together, we can make this system work better — for the people who keep our organizations running and the communities we all serve.