'Morgan Stanley employees should prepare for 2026 by reviewing upcoming benefit changes and exploring ways to manage rising out-of-pocket health care costs.' - Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Morgan Stanley employees can better navigate rising health care expenses in 2026 by understanding benefit adjustments early and making informed plan selections,' - Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we’ll examine:

1. Why increasing health care costs are pushing Morgan Stanley employers to pass more expenses onto employees.

2. The approaches companies are using to handle cost pressures, including changes in plan design and pharmacy benefit modifications.

3. How marketplace premium hikes and medical cost trends affect overall health care affordability.

In 2026, Morgan Stanley employees may bear a greater share of health care expenses as costs keep climbing.

Many large U.S. companies, including those such as Morgan Stanley, are preparing to adjust benefit structures to counter rising health care expenses. Mercer’s recent survey of 711 U.S. employers with 500 or more employees found that 51% are “likely” or “very likely” to raise deductibles, coinsurance, or out-of-pocket maximums in 2026—up from 45% in 2025. ¹  

Despite cost-saving actions, employers’ health care costs rose by 4.5% in 2024 and are expected to climb another 5.8% in 2025; absent these actions, Mercer estimates that costs could go up by ~8%. ²  A key contributing factor is the high price of GLP-1 medications for diabetes and weight loss, averaging around $1,000 per patient per month. ¹  The survey also found that 77% of employers rated managing GLP-1 costs as extremely or very important. ¹  Although many companies—including those in the energy sector—have expanded GLP-1 coverage, growing concerns suggest such plans may be untenable by 2026.

How are large employers changing their health benefits in 2026?

In 2026, 35% of large firms plan unconventional medical options like copay-based models, and 61% are evaluating alternatives to traditional pharmacy benefit arrangements. Previously, employers hesitated to raise deductibles because of tight labor markets and concerns about affordability. Today, with economic uncertainty and slower wage growth, cost management may be taking precedence over hiring and retention efforts in some cases. In 2026, 35% of large firms intend to offer unconventional medical plan options—such as copay-based models aimed at reducing costs while maintaining quality. ¹  Moreover, 61% are evaluating alternatives to traditional pharmacy benefit arrangements to bring more clarity to drug pricing and pharmacy benefit manager (PBM) services. ¹

How much will ACA marketplace premiums increase in 2026?

ACA marketplace premiums are expected to jump significantly, with states seeking increases ranging from 27% to 66.4% depending on the carrier and location. The pressure extends beyond employer-sponsored coverage. The ACA marketplace is slated to experience some of its biggest premium increases in over five years. According to state filings, 2026 premiums could jump dramatically—UnitedHealthcare in New York is seeking increases of up to 66.4%, ³  Arkansas expects an average increase of 36.1%, ⁴  and Florida Blue is looking at 27%. ⁵  If enhanced federal subsidies expire at the end of 2026, millions could be exposed to the full impact of these higher premiums.

What is driving health care cost increases across the industry?

Medical cost trends are projected to increase 7-10% annually due to brand medications, hospital services, and specialist care, with additional pressure from regulatory changes and insurer stock buybacks. Medical cost trends are projected to increase by 7–10% annually—far exceeding general inflation—driven by factors like brand name medications, hospital services, and specialist care. Regulatory changes are adding further pressure. Insurer earnings also contribute, as several major carriers posted record profits in 2026 while launching multibillion-dollar stock buybacks.

What should Morgan Stanley employees do about 2026 health care costs?

Morgan Stanley employees can offset added costs by understanding benefit changes, optimizing HSA/FSA contributions, and carefully selecting their 2026 plans. With 51% of employers planning to transfer more health care costs onto workers—and ACA premiums rising sharply—2026 may become a critical year for health care affordability. Morgan Stanley employees who familiarize themselves with upcoming benefit changes, optimize HSA/FSA contributions, and choose their 2026 plan with care may offset some of the added costs. Otherwise, households could see thousands in extra spending for equal—or even reduced—coverage.

The path forward on retirement planning looks different once you account for what Morgan Stanley brings to the table. Your employer's retirement benefits are a major asset, and the details of how they work should drive your approach.

The company provides retirement plan options including defined contribution savings plans with employer contributions to support employees' long-term financial planning. And your healthcare benefits deserve equal attention. The health plan tier you choose, whether an HSA-eligible option could save you money long term, and what happens to your medical coverage when you leave Morgan Stanley are all connected to how retirement planning plays out in practice.

The value of getting this right is significant: small differences in timing, contribution rates, and election choices at Morgan Stanley can compound into meaningful income differences over the course of retirement. That's especially true for retirement planning.

Sources:

1.  Mercer. “ U.S. Employers Rethinking Benefit Strategy for 2026 amid Rapidly Rising Costs .”  Mercer Newsroom , 16 July 2026.

2. Fierce Healthcare. ' Mercer survey: Employers may make a return to healthcare cost-shifting strategies ,' by Paige Minemyer. 16 Jul 2026. 

3. New York State Department of Financial Services. ' 2026 Individual and Small Group Requested Rate Actions ,' 2 June 2026. 

4. ACHI. ' Arkansas Insurers File Proposed Rate Increases for 2026 ,' by Chris Ray. 8 Aug. 2026. 

5. Insurance Newsnet. ' Florida Blue among companies proposing double-digit healthcare increases ,' by Christine Sexton. 12 Aug. 2026. 

Other Resources:

1.  Ortaliza, Jared, et al. “How Much and Why ACA Marketplace Premiums Are Going Up in 2026.”  Peterson-KFF Health System Tracker , 6 Aug. 2026.

2.  New York State Department of Financial Services. “2026 Individual and Small Group Requested Rate Actions – Additional Information.”  DFS Prior Approval Portal , accessed 13 Aug. 2026.

3.  Sexton, Christine. “Watch Out for Double-Digit Health Insurance Increases in 2026.”  The Florida Phoenix , 11 Aug. 2026.

4.  Federal Trade Commission.  Specialty Generic Drugs: A Growing Profit Center for Vertically Integrated Pharmacy Benefit Managers. Second Interim Staff Report.  14 Jan. 2026. pp. 5–6, 19–20, 32–34.