You may have noticed we recently shared tips on making the most of your end-of-year health benefits. Many patients and families are also hearing a steady drumbeat about rising health care costs heading into 2026. It’s a fair question to ask: if inflation is cooling in other areas, why is health care still getting more expensive?
Before we dig into the data, it’s worth addressing another common question:
Why is a health care provider — especially a podiatry practice — talking about insurance costs at all?
At Beyond Podiatry, rising health care costs don’t just affect insurance premiums. They directly impact how, when, and whether patients are able to access care.
When deductibles rise and out-of-pocket costs increase, we see patients delay visits, stretch out or neglect treatment plans, or try to manage pain and foot problems on their own for longer than they should. That can turn highly treatable issues like ingrown toenails, heel pain, or diabetic foot concerns into far more complex, costly problems.
Our role isn’t just to treat foot and ankle conditions. It’s to advocate for early care, education, and prevention, so our patients can stay mobile, independent, and healthy: especially during times when the health care system feels harder to navigate.
This article breaks down what’s driving health care cost increases in 2026, how employers and insurers are responding, and what individuals and families can do to prepare.
The big picture: 2026 is shaping up to be a costly year
Employer-sponsored health insurance, which covers most working-age Americans, is projected to see the largest cost increases in more than 15 years. Even after employers make changes to control expenses, total health benefit costs per employee are expected to rise around 6–7% in 2026. Without those changes, increases would be closer to 9%.
This marks the fourth year in a row of above-average growth after a long stretch where annual increases hovered closer to 3%. Many employers had hoped health care costs would stabilize as broader inflation slowed. Unfortunately, health care is following a different trajectory.
So what’s behind it?
Premiums are rising even before you visit a doctor
One of the most noticeable changes many families will experience in 2026 is higher monthly insurance premiums.
Across employer-sponsored plans, insurers are increasing premiums to keep pace with rising medical and pharmacy costs. Even when employers absorb part of the increase, employees often see higher payroll deductions simply to keep coverage in place before they’ve had a single appointment or filled a prescription.
For plans purchased outside the workplace, premium increases are expected to be even steeper in some areas, as insurers adjust pricing to reflect medical inflation and uncertainty around enrollment patterns. In practical terms, this means:
- Higher monthly costs just to stay insured
- Less room in household budgets for unexpected care
- Greater pressure to choose plans with higher deductibles or narrower networks to keep premiums affordable
Premium increases are often the first signal people notice, but they’re only one part of the broader cost story.
People are using more care compared to the pandemic years
Patients postponed routine care during the early pandemic years. As people returned to regular checkups, screenings, and specialist visits, demand surged, but the health care system’s capacity didn’t expand at the same pace. That imbalance continues to put upward pressure on prices.
Health system consolidation limits price competition
Over the past decade, hospitals, clinics, and specialty practices have increasingly merged into large health systems. While consolidation can improve coordination of care, it can also reduce competition.
Larger systems often have greater leverage when negotiating reimbursement rates, which contributes to higher overall costs that eventually show up in insurance premiums and out-of-pocket expenses.
The pandemic reset health care spending patterns
Health care spending dropped sharply in 2020 as people avoided in-person care. That decline didn’t last.
As vaccines became widely available, medical spending rebounded rapidly — with spending on medical services jumping dramatically in 2021. Employers also expanded coverage during this period:
- Telehealth became widely available
- Mental health benefits were enhanced
- Cost-sharing for virtual visits was often reduced
While these changes improved access, they also reset expectations about coverage and utilization. Pent-up demand, combined with expanded benefits, has continued to push costs higher. This is similar to how travel and hospitality prices surged when demand returned.
Supply chain pressures and inflation still matter
Even as inflation cools in other areas, health care remains sensitive to supply chain costs. Medical devices, supplies, and pharmaceuticals rely on complex global manufacturing networks.
When the cost of materials, equipment, or medications rises: whether due to inflation, supply constraints, or trade-related costs. Hospitals and clinics pay more to deliver care. Those higher operating costs flow through to insurers and, ultimately, to plan members.
Employer costs are increasing and being passed down to you
To manage rising costs, many employers are adjusting how plans are structured rather than absorbing the increases outright. Common changes include:
- Higher employee contributions from paychecks
- Increased deductibles and copays
- Greater use of narrow or tiered provider networks
- Expanded high-deductible health plans paired with HSAs
For employees, this often means lower monthly premiums can only come with higher out-of-pocket exposure, especially if care is needed unexpectedly.
How to prepare for a more expensive 2026
Instead of focusing only on monthly premiums, it helps to look at the total cost of care.
1. Do the math on your real annual cost
Add together:
- Your annual payroll contributions
- Expected doctor visits, prescriptions, procedures, medical equipment, over the counter costs, etc
For example, $3,000 in contributions plus $1,000 in expected care equals a $4,000 true annual cost. Comparing plans this way often reveals which option offers better value for your situation.
2. Use FSAs and HSAs strategically
If available, Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) let you pay for eligible medical expenses with pre-tax dollars.
Even modest contributions, such as $75 per month, can create a meaningful cushion over the year. HSAs, in particular, allow funds to roll over year to year, making them useful for future care needs.
Don’t forget: Your HSA and FSA plans are likely to cover much more than you expect! From over-the-counter pain medication like ibuprofen to service animal expenses to night splints for plantar fasciitis to the compression socks you’ve seen trending on social media – the items you need are likely to be HSA and FSA eligible! A quick way to get started on your research is to take a look at this easy to navigate eligibility expense list, but always check with your plan administrator!
3. Understand where cost-shifting is likely
Some plans offer incentives for using certain providers, preventive services, or in-network care. Knowing these details ahead of time can prevent surprise bills later.
Navigating 2026 Healthcare Costs Together
While we as individuals can’t control the broader trends, understanding how plans work, planning ahead for out-of-pocket costs, and using available savings tools can make a real difference. At Beyond Podiatry, we believe informed patients are empowered patients, and we’re always here to help you navigate your care with clarity and confidence.
