2026 Employee Benefits Market Outlook 3 Executive Summary In 2026, the employee benefits market is being shaped by a variety of trends, including regulatory volatility, shifting compliance priorities, accelerated cost pres- sures and ever-evolving workplace demands. Employers should brace for a compliance environ-ment defined by change and uncertainty. Streamlined Affordable Care Act (ACA) reporting requirements should help reduce administrative strain, while poten-tial updates to federal mental health parity regulations remain critical to monitor. The sweeping One Big Beautiful Bill Act (OBBBA) introduced extensive changes to employee benefit plans, most of which take effect in 2026. Added to this are shifting regulatory priorities under the Trump administration, ongoing benefits-re- lated litigation, and changes to federal budgets and staffing. To navigate these challenges successfully, employers should prioritize proactive planning and flexibility. As it relates to health care costs, affordability is a common talking point. Notably, health care costs are projected to increase 6.5%-10% in 2026, which will make it more difficult for employers to offer competi- tive health benefits. This marked increase is driven by a combination of factors, including, but not limited to, the continued adoption of glucagon-like peptide-1 (GLP-1) drugs, a heightened interest in specialty med- ications, sustained pressures affecting the health care labor market and an increased prevalence of chronic health conditions. Fertility benefits could see significant expansion in 2026, driven by a combination of employee demand, key regulatory guidance from the federal government and expanding state mandates. A 2025 report revealed that two-thirds of employers intend to invest in family health benefits over the next three years, representing a 44% increase compared to 2024. Additionally, wom- ens health support is seeing more emphasis, with workers demanding benefits for fertility, menopause care and maternal health resources. In terms of employee wellness, organizations are adjusting their strategies to address the physical, emo- tional, social and professional needs of their employees. This is driven largely by Generation Z (Gen Z) and mil- lennial employees who are more likely to prioritize wellness compared to older generations. One key well- ness trend to monitor is the shift toward mental fitness, which emphasizes building resilience and emotional strength through tools like mental health coaching and dedicated mental fitness days. Employer-provided stu- dent loan assistance is also becoming an important component of employee benefits, largely due to recent legislative changes and the ongoing desire of employees for financial support.