We’re halfway through 2026, which is a good time to check in on how employers are managing benefits this year. Across healthcare and retirement, employers say they are trying to manage their biggest cost drivers more carefully, and demanding more proof that programs work before expanding them.
In healthcare, employers are attempting to hold coverage as is.
GLP-1s remain the center of attention in 2026 healthcare planning. A survey done by Business Group on Health which advocates for employers, found nearly 8 in 10 employers are seeing rising utilization of various obesity medications, alongside growing costs from cancer treatment and mental health services. A related survey of 105 employers found 67% currently cover GLP-1s for weight management, but only 72% of those plan to keep that coverage through 2027.
It’s a sign that coverage has grown without becoming fully locked in. In response, employers are leaning harder on utilization management. That includes prior authorization, clinical eligibility checks, and program requirements without dropping coverage outright.
Retirement is staying steady, but not reactive.
Retirement on the other hand is evolving on its own schedule. Retirement benefits have not reacted to cost pressures. Survey data from Vanguard, Fidelity, and PSCA (compiled by Strategic Retirement Partners) shows automatic enrollment has become the default with 61% of retirement plans administered by Vanguard having adopted it. having been adopted, and PSCA put adoption at 64.3% of respondents, climbing above 70% for larger plans.
The payoff is that participation is about 94% for plans with automatic enrollment versus 64% for opt-in plans. Some of this is the SECURE 2.0 Act catching up to employer behavior, but plan sponsors also appear to be moving ahead of the mandate, treating stronger defaults as a retention tool.
Leave is another key benefit that is rising and getting complex.
Leave as a benefit isn’t often dissected, but it’s a vital tool for employees to prioritize their health and family. Request volume has been climbing the past couple years. SHRM reports that more than half of employers saw leave requests increase in 2024, and that remains a trend driven by illness recovery, mental health, caregiving, and parental leave. At the same time, the compliance landscape keeps expanding. DMEC tracks 16 separate paid family and medical leave jurisdictions, each with its own rules. Rather than adding new leave benefits, employers are focused on running their current ones better, often by outsourcing the administrative and compliance work.
What does 2027 planning look like?
2026 has been the year of trying to get it right vs. expanding benefits, with the expansion of voluntary benefit packages. But employers are learning that oversight and compliance are looking for more and better benefit monitoring and accountability.
As planning kicks off for 2027, you’ll want to know your utilization management is keeping pace with the biggest cost drivers. Are your retirement benefits competitive with the rest of the market? Can your leave administration handle the complex compliance landscape? Are healthcare benefits making it easier for employees to access what they want and need?
Read more on these trends in the employer survey from Business Group on Health, Six Key Trends for 2026 (Vanguard, Fidelity, and PSCA data), and employee leave trends.
