2026 Employee Benefits Market Outlook 13 Employer Takeaway Health care costs will continue to rise in 2026 and beyond, driven by factors including specialty drugs, GLP-1 medications, cancer care, chronic conditions, an aging popula- tion and labor shortages. While most employers cant expect to fully offset projected increases, they can prepare by focusing on three priorities: Targeted cost mitigationEmployers can explore programs that address high- cost areas, such as specialty pharmacy management, chronic disease prevention and site-of-care optimization. Employee communication and engagementTransparent communication about benefit changes and available resources will be critical to maintaining trust and supporting informed health care decisions. Cost-sharing strategiesAdjustments to plan design, including higher deductibles, coinsurance and tiered networks, can offset some portion of projected increases. Rising costs may be unavoidable, but informed employers who anticipate these trends will be better positioned to manage financial impact and maintain competitive benefits in a challenging market.