After navigating sharp healthcare cost increases in 2025, employers are bracing for a projected 9% median increase in 2026.1 Against that backdrop, The Hartford’s 2026 Future of Benefits Study shows which emerging trends are driving changes in employee benefit strategies.
“Since 2020, The Hartford’s study has captured the perspectives of more than 10,000 U.S. workers and HR professionals, tracking how expectations and realities have shifted,” says Laura Marzi, head of marketing for Employee Benefits at The Hartford. “This year, as employers face one of the most complex benefits environments in recent memory, the research highlights how they are rethinking the way they evaluate and manage benefits.”
With rising healthcare costs top of mind, The Hartford’s report finds that employers are seeking new ways to get more value from their benefits packages. At the same time, prioritizing employee engagement and raising the stakes for technology and benefits integration are also crucial.
Integration Drives Benefits Decisions
As stretched HR teams do more with less, benefits technology now plays a more central role. The Hartford’s study, however, reveals a notable shift in employer expectations and purchasing criteria. Today’s decision-makers expect benefits technology to integrate seamlessly with existing HR, payroll and leave management systems.
“Now, technology integration questions happen early in the conversation when employers explore adding benefits or selecting carriers,” Marzi says. “And it’s often the deciding factor. In fact, 80% of employers in The Hartford’s study say it’s important carrier’s systems connect with their HR technology connectivity.”2
The desire for integration extends beyond technology, with 68% of employers reporting that it’s challenging to manage multiple benefits carriers.3 In response, more employers seek solution-based models that streamline carriers and deliver a better employee experience, simpler enrollment and consistent communication.
An Elevated Role for Non-Medical Benefits
With one in three employers reporting healthcare cost management is their biggest concern, cost pressures are prompting nearly all employers to make changes. In fact, 93% of companies have taken action due to rising healthcare costs, according to The Hartford’s research.4
As a result, non-medical benefits are playing a more prominent role in the benefits mix as employers look to give employees additional financial protection options to help offset higher deductibles and out-of-pocket expenses. In fact, 33% of employers have added supplemental health benefits in response to healthcare costs, according to the study.5
“Non-medical benefits such as accident insurance and critical illness insurance are no longer nice-to-have portfolio expansions,” Marzi says. “We’re seeing more employers offering these benefits during enrollment as a way to add financial protection for employees and help with expenses not covered by medical insurance.”
An Emphasis on Benefits Engagement
The relevance of non-medical benefits is driving a heightened focus on employee engagement and education. One in three HR decision-makers identifies employee engagement as their top strategic priority. Still, 79% of these respondents report employee education remains a challenge.6
“HR leaders care deeply about the welfare of their employees and want to ensure employees understand how their benefits lead to holistic wellness,” Marzi says. “The focus has clearly shifted from once-a-year, check-the-box at enrollment to year-round benefits engagement and education.”
With 73% of HR leaders taking on more responsibilities, they are turning to benefits advisors and carriers for help boosting engagement. Nearly three in four HR leaders report that they are comfortable sharing employee data to support more tailored engagement.7
Carriers and benefits advisors are well positioned to help HR teams boost engagement with best practices and technology solutions, including simplified language explaining benefits, real-life examples of coverage in action and AI-backed decision support tools.
Looking forward, employers and benefits advisors can keep pace with evolving trends by partnering with carriers that create connected benefits experiences. Seamless data integration and connected claims management help ensure better employee engagement, benefits utilization and outcomes.
1 Business Group on Health, “Business Group on Health Survey: 9% Healthcare Cost Increase for 2026,” viewed February 2026.
2-7 The Hartford’s 2026 Future of Benefits Survey, viewed February 2026.
