The 2026 benefits landscape: What the cost conversation is missing

The headlines are unavoidable: health benefit costs are rising 6-7% in 2026,¹ the steepest increase in over a decade. Specialty drugs are straining pharmacy budgets. Employers are under pressure.

You know this already. So do employees — sort of.

Here's what deserves more attention: the growing gap between what employees have and what they actually understand about their benefits. That gap is quietly costing employers in engagement, retention and real financial exposure when employees face a health event without the coverage they need - or don't use the coverage they already have.

In 2026, the employers and brokers who stand out won't just be managing costs. They'll be closing the understanding gap.

The real risk isn't just rising premiums — it's misaligned coverage

When costs rise, the instinct is to focus on the medical plan: adjust the deductible, shop for a new carrier, tweak the network. And for good reason: the average cost of employer-sponsored health insurance reached nearly $17,500 per employee in 2025, up 6% from 2024. And prescription drug spending grew more than 9%, driven largely by specialty medications.²

That work matters. But it's also where most of the industry's attention has been for years.

What gets less scrutiny is whether employees actually understand how their full benefits package works together and whether they're making enrollment decisions that protect them.

Consider: an employee elects a high-deductible health plan to save on premiums but skips hospital indemnity coverage that would offset a $3,000 out-of-pocket hit if they're admitted. Or they decline short-term disability because they assume they have "enough" sick time until a six-week recovery from surgery proves otherwise.

These aren't edge cases. They're patterns.

The cost conversation is necessary. But the coverage alignment conversation is where employers can actually differentiate and where brokers can add value beyond rate negotiation.

Voluntary benefits are no longer a bolt-on

For years, supplemental health products like critical illness, accident and hospital indemnity lived on the margins of the benefits conversation — offered, but rarely emphasized. That's changing.

As cost-shifting becomes unavoidable and employees bear more out-of-pocket exposure, voluntary benefits are moving from "nice to have" to strategic necessity. They're how employers provide meaningful protection without absorbing additional premium costs. And they're increasingly how employees fill the gaps that high-deductible plans create.

But positioning matters. When voluntary products are buried at the end of an enrollment flow or explained with jargon-heavy materials, participation suffers. When they're framed as part of a cohesive financial protection strategy, enrollment and satisfaction improve.

The shift isn't just about offering more products. It's about integrating voluntary benefits into the story employers tell about total rewards and making sure employees can actually follow that story.

Enrollment is the moment of truth and most employers are losing it

Here's a stat worth sitting with: nearly 70% of employees use decision-support tools at enrollment when they're available.³ That's not a lukewarm response. That's employees actively seeking help making sense of their options.

And here's the tension: 46% of workers report feeling overwhelmed by the amount of communication they receive about pay, benefits and well-being.⁵ So employees want guidance, but they're drowning in noise.

The implication is clear: more communication isn't the answer. Better communication is. That means streamlined enrollment experiences that surface the right information at the right moment. It means decision support that helps employees understand trade-offs, not just features. And it means education that extends beyond open enrollment.

This is especially critical for supplemental products that pair with medical coverage. When employees can see how critical illness insurance protects their income during cancer treatment, they may be more likely to enroll and file a claim when they need to.

Accessibility isn't a compliance checkbox. It's a reach strategy

One more dimension that's often treated as an afterthought: accessibility.

CDC data shows more than one in four U.S. adults — over 70 million people — report having a disability.⁴ That's not a niche population. That's a significant share of any workforce, and it includes employees with visual, cognitive and motor impairments who may struggle with enrollment platforms and benefits communications that weren't designed with them in mind.

When employers invest in plain-language materials, mobile-first delivery, screen reader compatibility and clear visual hierarchy, they're not just checking a compliance box. They're expanding the reach of their benefits program to employees who might otherwise disengage.

Accessibility is also a signal. It tells employees that benefits are designed for everyone.

Looking ahead

Resilience, engagement and smarter plan design will lead the strategies for top-performing employers in 2026. Employers and brokers who embrace integrated solutions, modern experiences and disciplined data practices will be better positioned to support their workforce and adapt to what comes next.