Insights from NFP's 2026 Benefits Report on Healthcare Costs and AI
NFP's 2026 Benefits Report Highlights Shifts in Pharmacy Costs and AI Integration
Date: January 21, 2026
Location: New York
NFP, an Aon subsidiary renowned for its expertise in property and casualty brokerage and benefits consultation, has unveiled its 2026 U.S. Benefits Trend Report. This insightful report is based on comprehensive surveys of employers and employees, exploring key challenges such as rising healthcare expenses and the financial strain confronting workers. Notably, nearly 50% of employers forecast an increase in healthcare budgets in the coming fiscal year.
Doug Hammond, the CEO of NFP, commented on a paradigm shift in how company leaders perceive employee benefits, urging a balance between financial efficiency and employee well-being. Hammond emphasized that companies adept at interpreting and integrating today's complex workforce dynamics into their benefits offerings are likely to enhance organizational resilience and boost employee satisfaction.
Pharmacy Benefits and Talent Strategy
The report sheds light on the evolving landscape of pharmacy benefits, highlighting declining legacy drug use, rising specialty prescriptions, and the increased demand for GLP-1 medications. Approximately 70% of employers anticipate elevated pharmacy-related costs next year due to the soaring use of GLP-1 drugs for diabetes and weight management. This rising financial burden presents sustainability concerns for employers.
Kim Bell, EVP and head of Health and Benefits at NFP, pointed out that GLP-1 coverage extends beyond cost issues, significantly impacting employment decisions, with 29% of employees preferring employers providing such coverage.
Advancing Well-being and Financial Strategies
The report identifies persistent gaps in employee well-being programs, particularly regarding declining investment in mental health, with average spending per employee dropping by about 7% annually. Despite most employers offering mental health resources, coherent strategies to address stress and burnout remain insufficient, with less than half of companies providing burnout prevention training.
In terms of financial well-being, a disconnect exists between employer intentions and employee realities. Many employees face financial challenges, with two out of five lacking sufficient emergency savings. The limited provision of comprehensive financial well-being programs could adversely affect workforce productivity.
Beth Robertson from NFP advocates for a holistic approach, emphasizing that financial education and benefit design alignment are crucial for enhancing employee confidence and retention.
AI Governance and Compliance Challenges
The exploration of AI in HR processes shows that while some companies actively engage with AI tools, the absence of comprehensive governance policies poses risks. Only 28% of employers have established frameworks for guiding AI use, creating potential vulnerabilities in meeting regulatory compliance requirements, especially for algorithmic transparency.
Robertson highlighted the pivotal role of HR in intertwining AI governance with workforce strategies, fostering trust and ensuring responsible technology deployment within organizations.
As the insurance industry progresses through 2026, NFP's report underscores the necessity of addressing interconnected challenges such as rising pharmacy costs, well-being gaps, and AI readiness through coordinated strategic responses to empower both employees and businesses.
About the Report
NFP’s 2026 Benefits Trend Report stems from surveys conducted in October 2025, encompassing insights from 500 employer health insurance decision-makers and over 1,000 employees across varied employment arrangements.
About NFP
NFP is a prominent consultant in benefits and a leader in property and casualty brokerage under the Aon umbrella. The company offers expertise in insurance, benefits, and wealth management across markets in the U.S., Canada, the UK, and Ireland.