Managing health plan risk amid growing complexity: Q2 2026 People Solutions Market Update

Cost remains the top priority for employers, but meaningful change remains limited in today's volatile market

While plan sponsors are actively exploring a wide range of cost management strategies, adoption of the most impactful approaches remains limited. At the same time, market dynamics are evolving amid ongoing transitions. The result is a more complex, high-pressure, and less predictable cost environment, where managing total cost requires the most intentional strategy.

• Cost reduction remains the top employer priority when making benefit plan decisions. 54% of employers ranked it number one – rising 16 points from 2025 to 2026.

• Stop loss renewals are expected to increase up to 30%, reflecting continued pressure from high-cost claims and increasing variability in risk.

• Pharmacy rebates are declining as drug pricing models evolve, and legislative changes are increasing complexity and reducing predictability in pharmacy cost management.

Across the market, cost priorities remain consistent, but conditions are changing rapidly. As a result, employer focus should shift from exploring solutions to applying holistic strategies with precision, requiring a deep understanding of how these dynamics interact and where meaningful long-term opportunities exist.

Read more on where employers are currently focused within their benefit strategies, how claim severity is affecting the stop loss market, and where pharmacy pricing and rebates are shifting in the People Solutions Market Update.

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