Employees of both large and small companies should prepare for significantly higher health care costs in the coming year, according to a recent national survey of 1,700 employers conducted by Mercer.

The study found that employers expect medical costs to rise by nearly 9% on average in 2026 without changes to benefits. Even with plan adjustments — such as higher deductibles, larger co-pays, or trimmed coverage — costs are still projected to climb 6.5% on average.

Experts warn this marks the fourth consecutive year of significant increases, with next year’s hike expected to be the steepest since 2010. A quarter of employers anticipate double-digit increases even after altering their plans.

“This is a real issue for affordability in the workforce,” said Ellen Kelsay, president and CEO of the Business Group on Health, which represents large employers. Workers are likely to see the impact through higher premiums, cost-sharing, and potential benefit reductions.