Gallagher's 2026 US Benefits Benchmarks report highlights how employers are using stronger governance, analytics and vendor oversight to manage rising healthcare costs

ROLLING MEADOWS, Ill., Aug. 12, 2026 /PRNewswire/ -- According to Gallagher's 2026 Workforce Trends Report – Benefits Benchmarks, US employers are taking a more disciplined approach to benefits management as rising healthcare costs, mounting regulatory complexity and pressure to maximize benefit investments intensify. Based on responses from more than 3,700 US organizations, the report finds that employers are placing greater emphasis on governance, vendor accountability and data-informed decision making as they work to balance affordability, employee needs and long-term sustainability.

Medical cost pressure remains a dominant challenge. More than one-third of employers (36%) report health plan premium increases of 10% or more at their most recent renewal, even after implementing plan changes. Premium growth, combined with claims volatility and rising medical service costs, particularly hospital pricing and variation in site of care, is putting pressure on traditional cost-containment strategies. In response, organizations are taking a more proactive approach to managing plans, evaluating funding strategies, monitoring vendor performance and identifying opportunities to improve outcomes.

"At a time when cost pressure is persistent and difficult to forecast, employers can't rely on periodic plan changes alone," said John Tournet, US CEO of Gallagher's Benefits & HR Consulting Division. "They're adopting a more disciplined approach built on stronger data, closer oversight and ongoing evaluation of plan performance. We're also seeing growing interest in tools and technologies, including AI-enabled capabilities, that can help employers uncover trends, identify emerging risks and make more informed decisions."

Pharmacy benefits have become one of the most closely scrutinized areas of healthcare spending. Nearly one in two employers (49%) identify the rising cost of specialty drugs as a top healthcare cost challenge, reflecting the growing impact of high-cost therapies, including GLP-1 medications. Rather than shifting more costs to employees, organizations are focusing on greater transparency in pharmacy benefit manager (PBM) relationships, more disciplined pricing review and targeted utilization management.

As organizations look for ways to extend workforce support without significantly increasing costs, voluntary benefits are taking on a larger role within total rewards strategies. Employers most often cite offering a more comprehensive benefits package (72%), addressing coverage gaps (66%) and enhancing financial protection for employees (49%) among the reasons for providing voluntary benefits. Interest is also growing in supplemental offerings such as employee perks or discount programs (51%, up 7 points from 2023), identity theft protection (42%, up 8 points) and pet insurance (36%, up 13 points), highlighting a broader focus on financial and lifestyle support. As benefit portfolios become more diverse, employers are increasingly leveraging digital decision-support tools to help employees better understand and navigate their options.

With employer investments in wellbeing continuing to evolve, participation remains a key measure of program effectiveness. Nearly one in four employers (23%) report that fewer than 20% of eligible employees participate in wellbeing initiatives. This gap is prompting a shift away from stand-alone programs toward more integrated approaches that connect health, financial wellbeing and the day-to-day employee experience. Employers are focusing on making benefits easier to access, understand and use throughout the year rather than only during enrollment periods.

"Technology is changing how employees interact with benefits just as much as it's changing how employers manage them," Tournet added. "Whether it's better communication, simpler navigation or digital tools that help support more relevant guidance, the goal is the same: helping employees make confident decisions while improving the overall benefits experience."

Across these areas, a common theme is emerging: benefits strategy is becoming less about adding new programs and more about executing existing ones with greater precision. Reflecting this shift, more than a third of employers (37%) report leveraging analytics to inform workforce planning and decision-making, underscoring the importance of data in benefits management.

In an environment of rising costs and growing complexity, employers are placing greater emphasis on how they manage, measure and optimize their benefit investments. Data-driven decision-making is playing a growing role in helping organizations evaluate outcomes and deliver meaningful value for both employers and their employees.

ABOUT THE REPORT

Gallagher's 2026 US Workforce Trends Report – Benefits Benchmarks reflects survey responses from 3,717 US organizations collected from January through March 2026 and provides benchmarking data and insights across medical, pharmacy and voluntary benefits, wellbeing initiatives and absence management.

ABOUT GALLAGHER

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

CONTACT:

Mary Schwartz, Gallagher

847.378.5893

mary_schwartz@ajg.com

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SOURCE Gallagher