Soaring healthcare costs are forcing employers to rethink how they manage staff benefits, moving away from reactive plan adjustments toward continuous oversight and data-driven governance.

That is the key finding of Gallagher's 2026 Workforce Trends Report – Benefits Benchmarks, which surveyed more than 3,700 US organisations and found that benefits strategy is increasingly being treated less as an annual exercise and more as an ongoing management discipline.

According to the report, 36% of organisations reported health plan premium increases of 10% or more at their most recent renewal, even after making plan changes. Specialty drug costs are compounding the problem, with 49% of respondents identifying high-cost therapies, including GLP-1 medications, as a top healthcare cost challenge.

John Tournet, US chief executive of Gallagher's Benefits & HR Consulting Division, said employers can no longer afford to wait for renewal season to act.

"At a time when cost pressure is persistent and difficult to forecast, employers can't rely on periodic plan changes alone," he said. "They're adopting a more disciplined approach built on stronger data, closer oversight, and ongoing evaluation of plan performance."

Rather than passing costs on to employees, organisations are scrutinising vendor relationships more closely, particularly with pharmacy benefit managers, while investing in analytics to monitor performance year-round.

In fact, 37% of employers said they are now using data analytics to inform workforce planning and benefits decision-making, according to the findings.

"We're also seeing growing interest in tools and technologies, including AI-enabled capabilities, that can help employers uncover trends, identify emerging risks, and make more informed decisions," Tournet said.

Restructuring offered benefits

Meanwhile, the pressure to do more with less is also reshaping how employers structure their overall benefits offering, according to the report.

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