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As we wrap up a very successful open enrollment season, both our clients and their employees are seeking a simple experience that helps them optimize their employee benefits. We’ll share more on how they optimized benefits once our data scientists are done with their analysis, but there are a few trends that are already clear from this year’s open enrollment. The insights we’re gathering now will be invaluable as you prepare for the 2026 enrollment season, helping create an even more streamlined and effective process for next year.
1. Rising costs leading to carrier changes
Healthcare costs are projected to climb by up to 9% in 2026. Employees are very aware of this increase, and worried about it — and many employers took action by changing medical carriers or pharmacy benefit managers (PBMs) to mitigate these increases.
2. Employee benefits affordability matters
Affordability remains a top concern. Alight enrollment data shows a decrease in enrollment rates for employer-sponsored medical coverage over the past several years: Only 80% of employees earning under $60,000 enroll in medical coverage, compared to nearly 90% at higher income levels. To address this, employers are introducing new plan options such as:
- Copay-based plans that eliminate the barrier of a high deductible
- Reference-based pricing models that provide cost certainty to patients prior to treatment
- Primary care-centered plans that put the doctor at the center of patient care
- Value-based care solutions that focus on prevention and overall patient outcomes
These plan designs aim to reduce premiums and out-of-pocket costs, making coverage more accessible for a wider range of employees.
3. Simplifying the employee experience
Complexity is a perennial challenge, and 2025 was no exception. With multiple digital health solutions in play, employers are reassessing vendors for ROI and doubling down on engagement strategies. Streamlined enrollment approaches — like chat-based Q&A tools, AI-supported enrollment and passive enrollment — are gaining traction to make the process easier and less time-consuming. Alight participants overwhelmingly chose digital channels during annual enrollment: 97% enrolled digitally with an 11% increase in mobile enrollers. Just 3% choose to enroll with the help of the Call Center.
4. New opportunities for dependent care
For the first time since the 1980s, the Dependent Care FSA limit has increased from $5,000 to $7,500. This change offers families meaningful relief as child and elder care costs continue to rise.
The takeaway: Annual enrollment for 2025 highlighted the balance between managing costs and delivering an improved employee experience. As we look ahead to 2026, organizations that prioritize affordability, streamline benefit choices, and double down on engagement strategies will be best equipped to support their people and control spend. By applying these lessons, employers can ensure their benefits continue to meet evolving workforce needs while maintaining cost-effectiveness.
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