Survey finds continued healthcare cost pressures as premium rates increase 8% for the second consecutive year.

Media Contact: Heather Nezich, Manager, Communications, hnezich@aseonline.org | 248-223-8040

TROY, MI – September 29, 2026 - The American Society of Employers (ASE) released results from its 2026 Health, Welfare, and Retirement Plans Survey, based on data from 194 participating organizations.

Survey Findings:

• Eighty-four percent of survey participants offer employees a choice of two or more health plans, and 19% offer four or more. Among organizations with 500 or more employees, 65% offer three or more plan options.
• Fifty-five percent of organizations are fully insured and 44% are self-funded, with the remainder split among level-funded, group captive, and other arrangements.
• PPO remains the dominant network type offered, used by 82% of unionized employers and 74% of non-union employers.
• Employers cover a median of 82% of the premium for employee-only coverage under high-deductible health plans, and 80% under traditional plans.
• The median in-network deductible for employee-only coverage is $2,500 for high-deductible/CDHP plans and $1,000 for traditional plans, both unchanged from 2025.
• The median annual premium rate increase reported for 2026 was 8%, and organizations project a median increase of 8% again for 2027.
• The most widely adopted cost-cutting tactic among respondents was increasing employee premium cost-sharing, which has been implemented or is being actively being pursued by 75% of organizations, followed closely by expanding high-deductible/CDHP plan offerings and increasing employee education on plan features and costs, both at 71%.
• Ninety-two percent of organizations offer a 401(k) or 403(b) plan, down from 96% in 2025. Among those that do, automatic enrollment has grown sharply, now used by 60% of plans compared to 43% in 2025.
• Full immediate vesting is offered by 33% of plans, down from 38% in 2025. Among organizations that auto-enroll employees, the default investment is increasingly a target-date or lifestyle fund, now used by 74% of plans, up from 62% in 2025.

This year's results are also presented in a new searchable, interactive report format, letting participants filter findings by topics relevant to their needs. ASE members can access the survey at no cost via the ASE Survey Library. It is available for purchase for non-members in the same library.

"Organizations continue to face significant pressure from rising healthcare costs, with premium increases at 8% for the second consecutive year," said Mary E. Corrado, President and CEO of ASE. "As employers look for ways to manage these costs, many are increasing employee cost-sharing while also expanding plan options and education to help employees make informed benefits decisions. This survey provides valuable insight into how organizations are balancing affordability, competitiveness, and employee well-being."

The 2026 survey drew responses from 194 organizations Michigan organizations: 16% with 49 or fewer employees, 57% with 50 to 499 employees, and 27% with 500 or more employees.

About ASE
ASE is employers trusted partner for Everything HR. ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations and help them THRIVE.  ASE strengthens organization's HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues. ASE has offices throughout Michigan in Grand Rapids, Macomb, Muskegon, Novi, and Troy. Learn more about ASE at www.aseonline.org.