Let’s just rip the band-aid off and immediately acknowledge the current reality that healthcare is facing some major challenges right now.
At this point, I couldn’t sugarcoat it if I tried, although I do feel like I’m still being somewhat generous about it! 🤷♀️
And no, this isn’t some abstract problem that’ll work itself out if we all just think positive thoughts and offer yoga classes. No no no.
This is top of mind for literally everyone right now, from the C-suite sweating over budget forecasts to your employees who might be one medical emergency away from financial ruin.
The pressure is coming from every direction!
Leadership wants you to control costs without tanking morale, and employees want coverage that doesn’t require them to sell a kidney to afford their deductible.
Yet, you’re stuck in the middle as per usual, armed with a benefits package that was probably designed when flip phones were still cool, trying to make everyone happy.
Healthcare has been confusing for years, but lately I feel like it’s even harder to make the right decisions for our people and our orgs. It’s giving peak chaos.
We’ve watched costs creep up slowly, then suddenly sprint like they’re training for the Olympics.
Between 2020 and now, we’ve dealt with a global pandemic that exposed every crack in our healthcare system, the rise of expensive specialty drugs that cost more than a luxury car, and the delightful reality that mental health needs have skyrocketed while access has remained mediocre at best.
👀 Oh, and let’s not forget the looming specter of policy changes that could change everything we thought we knew about healthcare coverage.
You know The Big Beautiful Bill everyone keeps talking about? It could have a dramatic impact on employer health plans, and procrastination is not the answer.
But wait, there’s more!!!!
(I hate that I sound like an infomercial, but here we are.)
AI is simultaneously promising to revolutionize healthcare delivery while also making everyone panic about job security.
🤖 How the hell do you balance the cost of employees when robots might do their jobs cheaper?!
How do you convince people that preventative health matters when they’re too stressed about keeping their jobs to think about their cholesterol?
The cost pressure isn’t just about healthcare anymore. It’s also about pay equity, retirement security, competitive benefits packages, and somehow doing all of this without going bankrupt.
Meanwhile, a lot of employees don’t even understand the benefits they have.
Now, I know I just threw a LOT at you just now (sorry ❤️), so the glaring question is…what do we do about all of this?
And, in perfect timing, Aon just dropped some findings from their Annual Health Survey. The information is both validating and a little bit scary.
So in this article, we’re going to dig through the data to dissect the three most important takeaways from Aon’s survey results and why they matter to you, aka the person who might be losing sleep over these exact issues.
Then we’ll talk about what you can expect throughout the year, and how to tackle this nightmare with data, strategy, and maybe a little bit of help from people who know what they’re doing, so you can have a more optimistic outlook.
Ready? Okay, you can exhale now. Take a few more deep breaths and let’s continue!
We’re all in this together.
Remember when we thought healthcare costs would level off? LOL good times.
Healthcare costs are accelerating at the fastest pace in a decade, and employers can no longer rely on those cute little incremental changes that made everyone feel productive without actually solving anything.
You know the moves I’m talking about!
Nudging the deductible up by $100, switching to a slightly cheaper vendor, or sending out a wellness newsletter that exactly three people read.
That era is over, folks!
The pace of cost increases is forcing a complete re-examination of traditional strategies.
For context, managing healthcare costs and trends jumped from being the #1 priority for 38% of employers in 2024 to 62% in 2026.
💰 Here’s a hypothetical to consider: For a company with 1,000 employees, each 1% increase in healthcare costs translates to more than $100,000 in yearly expenses…
Let that sink in! When was the last time you saw a 1% increase because for me it’s been never!!
You can’t “trade-off” your way out of this by cutting the holiday party budget or eliminating free coffee. The math doesn’t math…
So if you’re still approaching benefits decisions like it’s 2019, you’re already behind.
Unfortunately, the strategies that worked even two years ago are becoming obsolete in real-time.
This isn’t about being an early adopter or chasing trends either, it’s about understanding that bandaids won’t fix it this time.
Aon’s survey identified three distinct groups of employers, and I need you to figure out which one you are:
🚗 The Early Movers (28% of employers): These folks aren’t waiting around for costs to become catastrophic. They’ve already hit their breaking point and are taking significant steps like implementing coverage restrictions, creating narrow networks, and putting serious constraints on pharmacy benefit managers. Large employers are leading this charge at 37%, and they’re not messing around!
👀 The Threshold Watchers (35% of employers): This group is keeping a very close eye on cost trends but won’t make major changes until increases surpass the 9.5% projected for 2026. Some are waiting for costs to hit 12% or higher before they act. They’re basically playing chicken with their healthcare budget and hoping they don’t blink first.
🤔 The Uncertain Majority (30% of employers): These organizations genuinely don’t know what would trigger bold action. They’re paralyzed by the complexity of the benefits landscape, and small employers are especially likely to be in this boat (36% unsure). This is the most concerning group because uncertainty at this scale is actively dangerous.
If you’re in that 30% who are uncertain, you might be hoping that if you don’t make a decision, the problem will somehow resolve itself. But I’m here to tell you the reality is it won’t.
Costs will keep climbing, your employees will keep struggling, and eventually you’ll be forced into making reactive, desperate decisions instead of strategic, thoughtful ones.
So I need you to understand that decision paralysis is not a neutral position. It’s a decision to lose money and options.
The longer you wait to figure out your threshold for action, the fewer good choices you’ll have when you finally hit that wall. And believe me, you will hit that wall!
The Early Movers aren’t smarter than you either…they just accepted reality faster.
Now the question is: how much money are you willing to lose before you accept it too?
Some employers have straight-up stopped waiting for permission to get creative. Let’s look at some of the survey data to paint a picture here.
They’re implementing transparent PBM programs (15% already in place, 22% strongly considering), reducing or restricting GLP-1 coverage (39% planned for 2026), and steering people toward Centers of Excellence (13% using today, 19% strongly considering if costs demand it).
These strategies are becoming more mainstream because they have to be.
Unsurprisingly, the Early Movers are dramatically more likely to pursue these bold strategies compared to everyone else.
For instance, 48% of Early Movers are reducing GLP-1 coverage versus only 35.8% of other employers.
They’re implementing alternative health plan models at nearly triple the rate (16.2% vs. 5.9%).
Instead of waiting for the perfect solution, they’re testing, iterating, and learning while everyone else is still forming committees to discuss the possibility of thinking about starting to maybe consider options.
And look, I get it. Some of these strategies feel aggressive.
Restricting coverage, implementing narrow networks, requiring Centers of Excellence…these aren’t easy decisions!!!
They come with employee pushback and genuine ethical questions about access to care, but think of it this way:
They’re trying to keep benefits sustainable so they can still offer something instead of nothing.
The gap between Early Movers and everyone else is widening fast.
The longer you wait to explore bold strategies, the more you’ll struggle to implement them later when you literally have no other choice.
Your employees will be less prepared, your infrastructure won’t be ready, and you’ll be making changes under crisis conditions instead of strategic conditions.
If you thought you had a recipe for chaos before? Having to make decisions out of desperation will only make it worse!
Okay, so now you know the problems. And I’m with you, it’s overwhelming!!
Let’s talk about what’s actually coming this year and how you can prepare without having a full breakdown in the office bathroom.
Despite everything changing, the top five benefits priorities for employers have remained surprisingly consistent from 2024 to 2026. Here’s what’s driving decisions:
- Manage healthcare cost and trend (duh)
- Invest in supporting employee health and wellbeing
- Enhance benefits to improve employee attraction and retention
- Improve access and affordability of healthcare for employees
- Measure impact of benefits and programs to show ROI
Notice anything? 👀
Managing cost is #1 for 62% of employers and a top 3 priority for 84%, but what’s interesting is that investing in employee health and wellbeing is still holding strong at #2.
What that tells me is that people aren’t choosing between cost control and employee wellbeing,they’re desperately trying to achieve both.
So what does that look like in practice? Well, employers are favoring proven cost-control strategies for now. Some of the top tactics include:
- Adjusting employee cost sharing (48% rank this in their top three strategies): This means changing payroll contributions and out-of-pocket costs. It’s not fun, but it’s familiar.
- Vendor optimization (37% rank this top three): Getting better value by changing vendors, renegotiating terms, or consolidating. Basically, making your current system work harder for less money.
- Pharmacy spend management (35% rank this top three): Changing PBMs, implementing prior authorization, step therapy, quality limits, etc. because pharmacy costs are absolutely out of control and everyone knows it.
- Wellbeing strategies and healthcare navigation (34% rank this top three): Actually helping people use the benefits they have and stay healthier in the first place.
These are cautious moves, with nobody flipping tables or burning down systems.
If costs keep accelerating, though, then incremental steps won’t cut it. Eventually, more innovative and potentially disruptive solutions will become necessary.
This sounds like a lot because it IS a lot, but you’re not alone in this!
With the right strategy and the right partners, you can navigate this chaos without sacrificing your sanity or your employees’ well-being.
It starts with understanding your costs and being honest about what you can and can’t sustain.
This year is going to be challenging, but we can manage it together if we stop pretending everything’s fine and start preparing ahead of time for potential shocks!
Alright, if you’re sitting there thinking “okay Hebba, but how do I actually DO any of this without completely losing it?”
I hear you! You need solutions, not just confirmation that everything’s a disaster.
You’re already overwhelmed with 47 priorities and stakeholders demanding miracles.
You need data and insights from people who’ve seen this exact nightmare play out thousands of times and know how to navigate it.
They’re providing the analytics to help you make smarter benefits decisions that balance cost control with employee wellbeing while actually positioning you for the future instead of just surviving today.
Healthcare will still be a mess and costs will keep climbing, but the difference between thriving and barely surviving comes down to having the right information and making smart, data-driven decisions instead of rolling a 🎲 and hoping for the best.
I know I threw a lot of stats at you in this one, so if you want to see Aon’s full Annual Health Survey in detail, I recommend giving it a look!
*The information contained in this article is intended to assist readers and is for general guidance only. This article is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.
