2026 Employee Benefits Market Outlook 9 The Rising Costs of Health Care: Strategic Insights for 2026 Health care costs have surged in recent years, and this trend shows no signs of slowing. As costs climb, offering competitive health benefits has become a major challenge for employers. In fact, Zywaves 2025 Broker Services Survey found that balancing attractive benefits with rising health care costs is the top HR and employee benefits concern amongst employers. Industry sources project that health care costs are likely to increase by 6.5% in 2026, with some estimates exceeding 10%. With costs compounding year after year, under- standing the factors behind these increases is essential. This section examines the key drivers shaping the rising costs of health care in 2026, and offers key insights for employers. GLP-1s Growing demand for GLP-1 drugs continues to be a top factor in rising health care costs. Surveys find that more employers are covering GLP-1s for weight loss, causing a significant impact on employer-sponsored health care spending. These drugs have gained rapid popularity from plan participants eager to lose weight and improve their overall health. Mounjaro, Ozempic and Rybelsus are approved for treating diabetes but are commonly prescribed off-label for weight loss. Zepbound and Wegovy are drugs that use the same active ingredients but are approved to treat obesity for qualifying patients. GLP-1 medications typically cost around $1,000 per month without insurance and are intended to be taken long-term to achieve their benefits fully. This means that GLP-1 users may experience health benefits but will be required to use these high-cost treatments on an ongoing basis.