Employers prioritize cost containment amid rising medical costs: Survey

Employers are focusing on cost containment for employees and the organization as healthcare costs across the U.S. continue to surge, a new survey from global insurance brokerage Brown & Brown revealed. While talent acquisition remains a key area of interest, cost control has overtaken workforce challenges as a top priority for 2026.

Brown & Brown based its report on survey responses from more than 1,200 employers, including over 200 organizations with at least 200 U.S.-based employees.

In addition to controlling health benefit costs and attracting and retaining a competitive workforce, other notable priorities included improving employee well-being programs, increasing workforce engagement and productivity and improving benefit communications.

"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," Chana Bieker, senior vice president, benefits, national account leader at Brown & Brown, said in a press release accompanying the report.

"Amid inflation, economic volatility and shifting social expectations, our survey shows organizations are prioritizing cost control more than ever. At the same, they are utilizing available budget to reinvest in employee well-being in diverse ways, such as more inclusive benefits and expanded parental leave."

Employers are actively implementing initiatives to improve benefits, the report showed. More than three-quarters of respondents said they planned to add partnerships with digital health or wellness solutions, develop data analytics strategies to measure benefit success and enhance cost transparency tools.

Parental leave is another area of improvement, with 71% of employers offering paid parental leave beyond statutory requirements. Most employers that plan to change parental leave in 2026 reported plans to increase the benefit rate, amount or duration.

The rising popularity of GLP-1 medication is also impacting employer benefit trends, the report showed. Nearly half of respondents said that they cover GLP-1 medications for weight loss, and most plan to continue doing so in the next 12 to 24 months.

However, about 63% of respondents have coverage restrictions in place and are actively seeking ways to balance cost challenges and access concerns.

"These tactics include members needing to meet clinical criteria beyond FDA guidelines, participating in lifestyle or behavior management programs and limiting member prescribing sources," the report stated.

Overall, the report demonstrated a shift in focus from talent acquisition to cost containment, reflecting the current healthcare benefits landscape.

Jill McKeon has covered healthcare cybersecurity and privacy news since 2021.