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Aon: U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026
Aon plc (NYSE: AON), a leading global professional services firm, revealed today that U.S. employer health care costs are projected to rise 9.5 percent* in 2026, exceeding $17,000 per employee. This marks the third consecutive year of elevated health care cost trends near double digits.
About this update from Aon Plc
[{"type":"text","content":"CHICAGO, Sept. 10, 2025 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, revealed today that U.S. employer health care costs are projected to rise 9.5 percent* in 2026, exceeding $17,000 per employee. This marks the third consecutive year of elevated health care cost trends near double digits.","length":327,"tagName":"p"},{"type":"text","content":"The continued rise in chronic conditions, such as musculoskeletal and cardiovascular disease, alongside an increase in high-cost conditions like cancer remains a primary driver of escalating medical costs in the U.S. Simultaneously, hospital workforce expansion is enabling greater patient throughput, further contributing to higher levels of health care utilization.","length":367,"tagName":"p"},{"type":"text","content":"Prescription drug spending is also rising, driven by greater use of costly brand-name and specialty medications. Notably, demand for GLP-1 therapies has surged, as uptake accelerates for treatment of diabetes, obesity and other chronic conditions.","length":247,"tagName":"p"},{"type":"text","content":""We are seeing medical cost inflation levels at their highest in years. But the overlooked reality is that employers continue to act as a stabilizing force. They absorb the bulk of the increase while making smart, targeted adjustments that protect employees and preserve plan value," said Farheen Dam, head of Health Solutions for North America at Aon. "We help employers navigate this volatility by identifying emerging risks within their employee health data, enabling them to make more resilient decisions on behalf of their workforce through predictive analytics and proactive planning."","length":611,"tagName":"p"},{"type":"text","content":"Employers are expected to continue absorbing the largest share of health care cost increases, mitigating the rising expenditures through strategies such as benefit design changes, employee payroll contribution increases, partnerships with point solution vendors and targeted chronic condition management. However, as medical inflation persists, it is also placing pressure on employers' ability to invest in other total rewards and people priorities — from compensation and career development to wider well-being initiatives — making it increasingly difficult to balance workforce needs hol...