Employers facing escalating medical and pharmacy expenses are making cost control their top strategic priority for 2026.
“Employers are taking decisive action to manage rising health care costs, from rethinking plan design to adopting digital care solutions and more rigorous pharmacy management strategies,” said Chana Bieker, senior vice president at Brown & Brown.
The insurance brokerage firm’s latest Employer Health and Benefits Strategy Survey reveals a benefits landscape shaped by rising costs, evolving workforce needs and a growing emphasis on innovation and sustainability. Although attracting and retaining a competitive workforce was the leading concern a year ago, the focus now has shifted to cost containment.
Popular initiatives include evaluating stop-loss plan design, conducting audits and partnering with digital health solutions to enhance plan transparency and effectiveness.
The growing popularity and high cost of GLP-1 drugs for weight loss is an ongoing concern. Nearly half of respondents cover GLP-1s for weight loss, with 9 in 10 respondents planning to continue coverage over the next one to two years. However, for those who do cover GLP-1s for weight loss, more than 6 in 10 have restrictions in place. A significant percentage of these employers have restrictions beyond prior authorization, such as having to meet certain clinical criteria above and beyond FDA guidelines (49%).
Despite the focus on cost control, employers remain committed to supporting employee wellbeing. Three-quarters said wellbeing programs are part of their health care strategies, and 78% of this group plan to increase related budgets. Parental leave enhancements also are on the rise, with 7 in 10 employers offering paid leave beyond statutory requirements.
Given the many pressures employers face in offering health benefit plans that are both comprehensive and affordable, it is notable that when asked about their role in driving change in the health care system, only 6% preferred a “wait-and-see” approach. This is a significant drop from last year’s results, when 16% said this was their mindset
“Amid inflation, economic volatility and shifting social expectations, our survey shows organizations are prioritizing cost control more than ever,” Bieker said. “At the same, they are utilizing available budget to reinvest in employee wellbeing in diverse ways, such as more inclusive benefits and expanded parental leave.”
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