2025–2026 Healthcare Cost Trends: What New York Employers Need to Know
Mercer's 2026 National Survey of Employer-Sponsored Health Plans projects that employer health benefit costs will rise approximately 5.8% on average in 2026, with that figure climbing to around 9% for employers who take no active cost-management steps. For New York employers, the picture is even more challenging: the state's regulatory environment, high provider costs, and dense urban market dynamics push local rates above the national average.
What's Driving the Increase
The primary cost drivers include specialty drug spending, behavioral health utilization, and deferred care from prior years now entering the claims stream. For New York employers specifically, state-mandated benefits and the concentration of high-cost hospital networks add additional pressure.
Strategies That Work
PEO placement, self-funded plan structures, and proactive carrier re-marketing are the three most effective levers available to small and mid-sized employers. A&C Management Group evaluates all three for every client at renewal.