Amid surging healthcare expenses, more U.S. employers are diversifying their health plan offerings to maintain affordable coverage for workers, according to Mercer’s latest National Survey of Employer-Sponsored Health Plans.
The 2025 report found that 67% of large organizations now provide three or more medical plan options at their largest worksites. These expanded offerings are designed to meet varied workforce needs and help employees manage costs by selecting plans that align with their personal healthcare usage.
“The trend toward diversification will likely continue as newer plans often cost less and offer better value for participants,” said Tracy Watts, Mercer’s U.S. leader for healthcare policy.
Rising Health Insurance Costs
The push to broaden choices comes as employer-sponsored health insurance costs continue to rise. In 2025, the average annual cost per employee reached $17,496, a 6% increase from the previous year. Mercer attributed much of this uptick to higher prescription drug spending.
Looking ahead to 2026, Mercer projects the steepest cost increase in 15 years—an estimated 6.7%—which would push the average per-employee cost past $18,500.
Balancing Affordability and Coverage
Employers face mounting pressure to control expenses while keeping health coverage accessible across income levels, said Ed Lehman, Mercer’s U.S. Health and Benefits Leader.
“Employers want to limit paycheck deductions while ensuring every employee can afford the care they need,” Lehman explained. “It’s a difficult balance, but innovative plan models can help.”
One growing strategy is the adoption of non-traditional plans that manage costs through smaller, high-performing provider networks selected for cost and quality. Mercer reported that 35% of large employers already offer at least one such plan.
Preventive Care and Targeted Health Programs
Beyond plan design changes, many employers are turning to targeted health programs to reduce long-term costs. Approximately 32% offer standalone diabetes programs, 28% provide musculoskeletal care initiatives, and 23% cover fertility support programs.
Mercer notes that promoting preventive care and disease management not only reduces health risks in the workforce but also improves long-term affordability.
Global Context
Rising benefit costs are not limited to the U.S. In the Asia-Pacific region, a recent WTW survey projected healthcare benefit costs to climb by 14% in 2025, exceeding last year’s 13.2% rise.
“Encouraging employees to use benefits wisely and prioritizing preventive care are key steps toward sustainability,” said Fong Han Wei, WTW’s Head of Health and Benefits for Asia-Pacific.
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