2026 Employee Benefits Outlook

Benefits Costs Are
Surging. The Rules
Just Changed.

Health care costs are projected to jump 6.5–10% in 2026. GLP-1 prescriptions tripled. A massive new law rewrote FSAs, tax credits, and dependent care overnight. If you’re still running last year’s playbook, you’re already behind.

Health Care Cost Trend2019 – 2026P
GLP-1 Cost$1,000/mo
Hospital Labor56% of costs
FSA Limit (New)$7,500
Fertility Invest2 in 3 employers
+6.5–10%2026 Cost Rise
75%Chronic Disease Impact
40%AI in Benefits Admin
 Scroll
Health Care Costs +6.5–10%
GLP-1 Prescriptions 3× Since 2020
Dep. Care FSA $5K → $7.5K
Fertility Mandates 20+ States
AI in HR Admin 40% Adoption
Hospital Labor 56% of Costs
Chronic Disease 75% of Employers
Paid Leave Laws ∼Half of States
Student Loans Now Permanent
IVF Per Cycle $12K–$30K
Health Care Costs +6.5–10%
GLP-1 Prescriptions 3× Since 2020
Dep. Care FSA $5K → $7.5K
Fertility Mandates 20+ States
AI in HR Admin 40% Adoption
Hospital Labor 56% of Costs
Chronic Disease 75% of Employers
Paid Leave Laws ∼Half of States
Student Loans Now Permanent
IVF Per Cycle $12K–$30K
Why This Matters

Four Forces Reshaping Benefits in 2026

New federal laws. Skyrocketing drug costs. AI reshaping HR. State-by-state leave mandates. Here’s what’s driving the chaos — swipe to explore.

GLP-1s Tripled Since 2020 — at $1,000/Month

12% of Americans have used a GLP-1 for weight loss. Another 14% want to. Only 19% of mid-size employers cover them. Add coverage and costs spike. Don’t, and you lose talent.

New Law Rewrites FSAs, Tax Credits & Dependent Care

The OBBBA raised FSA limits to $7,500, boosted child care credits from $150K to $500K, created “Trump Accounts” for kids, and made telehealth HSA relief permanent.

2 in 3 Employers Expanding Fertility Benefits

IVF costs up to $30,000 per cycle. California just joined 20+ states mandating fertility coverage. New federal guidance lets you offer standalone fertility benefits outside your health plan.

AI Runs 40% of Benefits Admin — and Cut 1M+ Jobs

40% of HR leaders use AI for benefits. But 60% of firms see minimal ROI. McKinsey says 30% of work could be automated by 2030. AI in HR is inevitable — getting it right is not.

Student Loan Help Is Now Permanent — and Tax-Free

30% of U.S. adults hold student debt. The OBBBA made $5,250/year in employer student loan repayment permanently tax-free. Plus, SECURE 2.0 lets employers match 401(k) contributions on student loan payments. It’s a recruiting weapon most companies still aren’t using.

Swipe to explore
0
%
Max projected health care cost increase in 2026
0
%
Of hospital costs are pure labor — and wages keep rising
0
%
Of large employers say chronic disease drives premium hikes
0
%
Of adults hold student loans — now eligible for tax-free help
Inside the Report

GLP-1 Prescriptions Tripled. Coverage Decisions Can’t Wait. What’s Your Plan?

Our report breaks down the cost impact of covering (or not) GLP-1 drugs, plus 8 other forces reshaping what you’ll pay for benefits in 2026.

See the Full Breakdown ↓
Cost Drivers

What’s Actually Making Benefits More Expensive

Three forces are colliding to push costs up: drugs, demographics, and disease. Switch views to explore the data.

GLP-1 Adoption SurgeTripled Since 2020
12% have used for weight loss~$1,000/month
Health Care Cost Trend+6.5–10%
Year-over-year increaseAccelerating since 2022
Fertility Benefits AdoptionRising Fast
2 in 3 employers investing$12K–$30K per IVF

GLP-1 Coverage (200+ Employees)

KFF 2025 Employer Health Benefits Survey
0%19% of firms100%

GLP-1 Coverage (5,000+ Employees)

KFF 2025 Employer Health Benefits Survey
0%43% of firms100%

HR Leaders Using AI for Benefits Admin

Mercer 2025
0%~40%100%

AI Usage in HR Processes (All Orgs)

Sapient Insights Group — up from 24% in 2024
0%31%100%

Orgs Offering Fertility Services

Maven 2025
0%40%100%

Orgs Offering Menopause Support

Maven 2025
0%21%100%

Health Care Cost Drivers — Relative Impact on Premiums

Sources: KFF, CMS, American Hospital Association

Specialty Drugs
Labor / Wages
Chronic Disease

2026 Compliance Checklist — Key Dates & Changes

Every deadline, new rule, and plan doc update you need before year-end.

TopicChangeEffectiveStatus
ACA ReportingSimplified statement relief — website notice requiredMar 2, 2026⚠️ Action
Dependent Care FSAAnnual limit raised to $7,500Jan 1, 2026✅ Update
Telehealth + HSAHDHP telehealth relief made permanentRetroactive✅ Done
Trump AccountsNew employer savings accounts for children2026⚠️ New
Child Care CreditMax credit: $150K → $500K; rate: 25% → 40%2026 Tax Year✅ Update
Mental Health ParityStricter NQTL enforcement + outcomes dataOngoing🔴 High
HIPAA PrivacyReproductive health privacy rule invalidatedJune 2025⚠️ Monitor
HIPAA SecurityProposed updates to strengthen cybersecurityTBD 2026⚠️ Pending
Student Loan Benefits$5,250/yr tax-free — now permanentPermanent✅ Offer
401(k) Loan MatchMatch on qualified student loan paymentsPlan Years 2025+✅ Offer
Fertility MandatesCA + 20 states mandate coverage incl. IVFVaries⚠️ Action
Paid Leave (State)∼Half of states with PSL or PFML programsOngoing🔴 Track
Full Compliance Checklist
Download Report to View
Where the Money Goes

Your Benefits Dollar in 2026

What’s Driving Costs Up

Top forces pushing employer premiums higher

Specialty Drugs (28%)
Labor Costs (24%)
Chronic Disease (22%)
Aging Population (14%)
Compliance (7%)
Other (5%)

Wellness Spending by Generation

Who’s driving demand for benefits (McKinsey)

Gen Z + Millennials (41%)
Gen X (31%)
Boomers 58+ (28%)
Exclusive Analysis

Half of States Now Mandate Paid Leave. Is Your Multi-State Compliance at Risk?

Leave laws are expanding faster than most HR teams can track. New qualifying reasons, broader family definitions, FMLA conflicts. The full report maps it all.

Get the Full Report →
Report Preview

What’s Inside the Full Report

A taste of the 30-page report. Download to get every compliance deadline, cost strategy, and action item.

Health Costs

Costs Could Jump 10%. Here’s Where to Cut Without Hurting Employees.

Specialty pharmacy management, chronic disease prevention, site-of-care optimization. The report gives you a concrete playbook for each strategy.

Download to Unlock
Compliance

The OBBBA Changed Everything. Here’s Your Plan Document Checklist.

FSA limits, Trump Accounts, telehealth HSA relief, child care credits — every update and deadline in one place with sample language…

Download to Unlock
Benefits Strategy

Student Loan Help Is Now Permanent & Tax-Free. Here’s How to Set It Up.

$5,250/year tax-free. Plus new 401(k) matching on student loan payments. Implementation timelines, IRS guidance, nondiscrimination testing…

Free Download

Get the Full
2026 Benefits Outlook.

30 pages covering compliance deadlines, cost strategies, new laws, fertility mandates, leave expansion, AI in HR, and clear action items for open enrollment.

No spam. No sales calls. Just the report you need to stay compliant and competitive.