Healthcare costs in the United States show no signs of easing, according to a medical cost trend analysis from PwC. The report examines the forces pushing health spending higher in 2026 and paints a picture of an industry still struggling to bend the cost curve.
Several key drivers are fueling the trend. Increased utilization of healthcare services, partly a lingering effect of deferred care during the pandemic years, continues to put pressure on the system. At the same time, expensive new therapies — including GLP-1 receptor agonists for weight loss and diabetes, gene therapies, and advanced cancer treatments — are adding to the bill.
Workforce challenges also play a role. Hospitals and health systems continue to face staffing shortages, particularly in nursing, which has driven up labor costs through travel nurse contracts and competitive wage increases. These expenses are ultimately passed along to employers and consumers through higher insurance premiums.
The report suggests that employers, insurers, and policymakers will need to pursue multiple strategies simultaneously — from negotiating drug prices and expanding preventive care to leveraging technology and alternative care models — to meaningfully slow the growth of medical costs. For the average American, the trend means continued upward pressure on premiums, deductibles, and out-of-pocket expenses heading into the latter half of the decade.
