Alera Group Releases 2026 Healthcare and Employee Benefits Benchmarking Report, Highlighting Rising Cost Pressures and Shifting Employer Strategies

New findings reveal record levels of medical rate increases, growing interest in self-funded plans, and continued expansion of supplemental benefits offerings

Deerfield, IL. June 16, 2026—Alera Group, a leading independent national insurance and financial services firm, today released its 2026 Healthcare and Employee Benefits Benchmarking Report, providing employers with a comprehensive look at how organizations are navigating rising healthcare costs, evolving workforce expectations and increasing pressure to deliver meaningful value through employee benefits.

Drawing on responses from employers across industries and organization sizes, the report highlights a benefits landscape defined by affordability challenges and strategic transformation. As healthcare and pharmacy costs continue to rise, employers are balancing cost management with the need to attract, retain, and support employees.

Among the report's key findings:

• Medical cost pressures continue to intensify. 84% of employers reported an increase in medical rates, the highest level recorded since the survey began.
• Supplemental benefits are gaining momentum. Employers are increasingly offering accident, critical illness and hospital indemnity benefits as cost-effective ways to enhance financial protection and employee support.
• Interest in self-funded plans continues to grow. More organizations are exploring self-insured and level-funded arrangements to gain greater flexibility, visibility, and control over healthcare spending.
• Employers are prioritizing affordability without sacrificing choice. Organizations are increasingly evaluating innovative plan designs and care management strategies to improve employee experience while managing long-term costs.

"The findings make it clear that employers are reaching a point where simply shifting costs is no longer a sustainable long-term strategy," said Nicole Negvesky, Employee Benefits Practice Leader at Alera Group. "Organizations are taking a more thoughtful approach to benefits design, evaluating everything from pharmacy management and supplemental benefits to funding arrangements and employee engagement to ensure they're creating value for both the business and their workforce. The challenge today isn't simply controlling costs; it's making benefits investments that improve affordability, support employee wellbeing, and deliver measurable outcomes."

The findings suggest employers are moving beyond traditional cost-containment strategies and adopting more data-driven approaches that balance financial sustainability with workforce wellbeing. Rather than simply shifting costs to employees, many organizations are reassessing plan design, pharmacy management strategies, supplemental benefits and funding models to improve outcomes while maintaining competitiveness.

Additional report findings include:

• Employers continue to offer strong core benefits, with 98% offering medical coverage, 91% offering dental coverage, and 83% offering vision benefits.
• Supplemental accident coverage increased from 30% of employers in 2024 to 41% in 2026.
• Median monthly medical premiums for employee-only coverage increased to $761, while median employee contributions rose to $155 per month.
• Self-funded and level-funded health plans continue to gain traction among mid-sized and larger employers.

 The 2026 Healthcare and Employee Benefits Benchmarking Report serves as a resource for employers evaluating benefits strategies, plan design decisions and workforce investments amid continued economic and healthcare market uncertainty.

To download the full report, click here.