Navigating the 2026 Benefits Renewal Storm

As employers prepare for the 2026 renewal season, many are facing the same challenge: what is driving continued cost pressure, and how can organizations respond? To help shed light on the current market environment, Josh Bergman, Michelle Sikich, Paul Shaheen, and Kevin Ryan discussed the factors influencing this renewal cycle and the strategies employers can consider moving forward.

Continue reading to learn key takeaways from the presentation.

Rising Renewal Costs Continue to Challenge Employers

One of the most pressing concerns for employers this renewal season is the continued pressure on costs. Paul Shaheen noted that employers are hearing a lot of concern about where costs are going, and that many of those concerns are legitimate.

Several factors are contributing to the increase, including long COVID-19 effects, employees who delayed treatment during the pandemic and are now facing more serious health issues, and the impact of GLP-1 drugs. Paul also pointed out that labor costs are rising, which adds another layer of pressure for employers.

The result is a renewal environment that remains difficult to sustain year after year. The message for employers is clear: understanding the underlying drivers of cost is the first step in identifying practical next steps.

Delayed Care from COVID-19 Is Still Affecting Claims

During COVID-19, many people sought care only for immediate needs, while routine care was often pushed aside. As a result, some diseases and conditions were left untreated, not treated early, or not detected at all. Now that employees are returning to more regular care and seeing their physicians more consistently, conditions are identified at later stages, and treatment tends to be more complex and more expensive. This has created a significant impact on claims and overall medical plan costs.

Modern Treatments Are Beneficial, but They Come at a Cost

The panel also emphasized that many of today’s medical advancements are truly life-changing. Michelle noted that today’s facilities, tests, procedures, and medications have made it possible to treat conditions that, decades ago, could have been fatal. As a result, many people can now live productive lives thanks to these advances.

At the same time, these treatments come with a cost. Medications can make up a significant portion of a group’s overall claims expense, as well as the claims cost for individuals and families.

GLP-1 Drugs Remain a Major Employer Concern

GLP-1 drugs are another major topic of concern. Employers are asking whether these medications are covered and what effect they may have on plan costs.

Due to their growing use and high expense, GLP-1 drugs continue to be one of the most frequently discussed issues during renewal season. For employers, the issue is not just whether these medications are covered, but how they fit into the broader strategy for managing benefits costs responsibly.

Employers Should Review Their Options Carefully

Paul Shaheen also emphasized the importance of looking beyond the surface of a renewal and considering whether other options may be worth exploring. While many employers have been with the same carrier for a long time, it is still important to evaluate whether the current arrangement is delivering the best value.

Employers should take time to review plan design, contribution strategy, employee education, and carrier alternatives as they prepare for renewal. The goal is not simply to reduce costs in the short term, but to help employers make informed decisions that support the sustainability of long-term plans.

Employee Education Plays an Important Role

Another important takeaway from the discussion was the value of employee education. Michelle noted that employers should help employees understand the tools and resources available to them so they know how to use their plan effectively when they need care.

The panel emphasized that education can help employees feel more confident navigating the health plan, especially when they are dealing with serious or unexpected medical issues. Better understanding can also help employees make more informed choices, which may lead to improved outcomes and better cost control over time.

Final Thoughts

The 2026 renewal season is shaping up to be another challenging one for employers, but understanding the factors behind rising costs can help organizations prepare and respond more strategically.

From delayed care and chronic condition management to the rising cost of modern treatments and the impact of GLP-1 medications, employers are navigating a complex environment. By taking a closer look at plan design, employee education, and available market options, organizations can better position themselves for the year ahead.

View the full recording of this discussion here.