Cost pains take hold across the healthcare market: Q4 People Solutions Market Update

Navigating market pressure & higher claims

Employers are heading into 2026 in an environment shaped by system-wide financial strain, rising renewals, growing risk, and accelerating costs:

• The market is strained: Inflation, volatility, and provider pressure are reshaping pricing and access.

• Plans are under pressure: Fully insured and self-funded groups face higher renewals and financial risk.

• High-cost claims are escalating: Claims from members with $100K+ in combined medical and pharmacy spend are rising sharply, driven by acute and specialty care costs.

Health systems, carriers, and employer plans are all under pressure, and as both cost and complexity increase, employers will need clear priorities, strong clinical and data-driven insights, and a holistic strategy that addresses both health and cost outcomes.

Read more on the broader industry forces behind system-wide strain and our 2025 high-cost claims analysis for a full picture of how widespread market pressures are shaping employer plan costs in the People Solutions Market Update. (opens a new window)

READ THE MARKET UPDATE (opens a new window)