Context:

Employers are preparing to shift more health care costs to employees in 2026 due to rising expenses, with over half considering higher deductibles and out-of-pocket maximums. Despite a tight labor market and increased living costs deterring earlier cost transfers, nearly 6% growth in health benefits costs is expected this year. Employers are also grappling with the high costs of covering anti-obesity medications and are considering limiting eligibility or requiring more documentation for coverage. Mental health services are being expanded, with more sessions and onsite counseling being offered, while child care and elder care benefits are also being enhanced. Employees will receive detailed information about their health care benefits during the annual open enrollment period in the fall.

Dive Deeper:

• In response to years of high health care costs, employers are planning to pass more expenses onto employees in 2026, with 50% of companies considering higher deductibles or annual out-of-pocket maximums.

• The rising cost of living and a tight labor market have previously deterred companies from increasing workers' financial burdens, but the 6% expected growth in health benefits costs is compelling them to reconsider.

• The cost of anti-obesity GLP-1 medications is a significant concern, with many large companies providing coverage but potentially slowing down the adoption of new coverage in the future due to high expenses.

• Mental health services are being expanded, with an increase in onsite Employee Assistance Program counseling services and the number of sessions offered, reflecting a commitment to staff well-being.

• Child care and elder care benefits are becoming more prevalent, with over half of large employers offering resources like child care search platforms and backup services, along with elder care support.

• Support for women's reproductive health is being prioritized, with resources such as lactation support and high-risk pregnancy care becoming more common among employers.

• Detailed information about the health care benefits available to employees will be provided during the annual open enrollment period, which typically occurs in the fall.