At Granite Insurance, we’re committed to helping organizations navigate complex challenges with confidence. As health care costs continue to rise, employers are feeling the strain of balancing budgets while maintaining benefits that attract and retain top talent.
According to the Business Group on Health, employer health care costs are projected to rise 9% in 2026 — the largest increase since tracking began in 2010. Rising expenses are driven by factors such as specialty medications, chronic conditions, mental health needs, medical inflation, and an aging workforce.
Managing these costs while keeping employees healthy requires proactive, informed strategies.
1. Prioritize Preventive Care
Preventive care reduces long-term costs and supports employee well-being. Encourage routine screenings, annual checkups, and early intervention. In fact, 43% of employers plan to cover all breast cancer screenings in 2026, up from 25% in 2025, a sign that more organizations see the value in prevention.
Educating employees about the benefits of preventive care and providing easy access to in-network providers can lower claims and improve outcomes.
2. Reassess High-Cost Medication Coverage
The growing demand for GLP-1 weight-loss drugs like Ozempic and Wegovy has reshaped employer health care spending. Review your plan’s approach to these medications and explore cost-saving solutions such as:
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Contracted pricing directly from manufacturers
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Prior authorization policies
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Lifestyle and nutrition programs as alternatives
Taking a thoughtful approach helps balance financial responsibility with employee support.
3. Strengthen Care Management Programs
Early intervention programs and nurse helplines empower employees to manage chronic conditions effectively. Providing guidance through disease management programs or telehealth check-ins helps employees follow care plans and avoid costly complications—resulting in healthier outcomes and lower overall expenses.
4. Invest in Wellness Initiatives
Wellness programs promote long-term health and productivity. Initiatives like fitness challenges, meditation sessions, and healthy food options not only boost morale but also reduce chronic illness-related claims.
Clear communication about how and when to seek care (primary care, urgent care, or ER) can further control unnecessary costs.
5. Expand Mental Health Support
Mental health challenges are a growing driver of health care costs. Offering Employee Assistance Programs (EAPs), teletherapy, and well-being apps can make mental health support more accessible. These resources foster resilience, reduce absenteeism, and build a healthier workplace culture.
6. Embrace Technology for Smarter Benefits Management
Technology can help employers better manage benefits and identify cost drivers. From virtual physical therapy to data analytics that track claims trends, digital tools enable smarter decision-making and improve plan efficiency.
Regularly reviewing vendor relationships and reallocating funds to programs with the most impact can also yield measurable savings.
Partnering for Success
Navigating health care costs doesn’t have to be overwhelming. Partnering with a trusted advisor like Granite Insurance ensures you have the insight, data, and strategy to keep your benefits competitive — and your employees empowered.
