Open enrollment season is almost here — just like cooler mornings, cozy sweaters, and the first pumpkin spice lattes of the year. 🍂☕ Just like autumn reminds us to prepare for the colder months ahead, open enrollment is the perfect reminder for employers to take stock of their employee health benefits strategy. For 2026 especially, rising costs and shifting laws and regulations make it even more important to ensure your plan is working for both your business and your employees.
Review Your Current Benefits
The first step towards assessing your health benefits strategy is to analyze what you currently offer. Whether you’re a large company offering full employee and family coverage or a small business looking to offer benefits for the first time, here are some things to look at:
- Assess usage: Look at the last year’s round of enrollment and usage. Are your employees engaging with the coverage you provide, or are there gaps in care?
- Affordability: Are employees getting the coverage they need? Are premiums, deductibles, and out-of-pocket costs still manageable for them?
- Benchmarking: Compare your offerings against industry standards. Staying competitive matters — not just for attracting talent, but for retaining the team you already have.
Related Article: What Individuals and Businesses Should Know About the 2026 ACA Changes
Rising Group Premiums Giving You a Squeeze?
The biggest reason employers usually do a benefits gut-check is when that group plan renewal comes in overhead. Rising group premiums are expected again in 2026, with the Business Group on Health projecting a 9% increase. This isn’t a one-off year either, it’s part of a sustained trend that’s been tightening the squeeze on employers for three years in a row.
The balancing act of controlling costs while keeping benefits competitive is part of the challenge. Do you absorb more of the cost, or shift some of the burden to employees through higher contributions, deductibles, or copays? Employers know they can’t simply cut back without consequence. That’s why many companies are now looking beyond traditional group plans and asking whether there are smarter, more flexible ways to deliver value.
Consider Lifestyle & Wellness Benefits
If you’re not in a position to adjust or enrich your health benefits, there are other types of benefits that can sweeten the deal for your employees without going overboard on your budget. Lifestyle and wellness benefits give employers another way to show employees they’re cared for.
Some options to consider include:
- Wellness perks: Gym stipends, mental health apps, or mindfulness programs can support overall well-being and ease mental health challenges.
- Lifestyle benefits: Flexible work arrangements, commuter subsidies, or home office stipends have proven to be highly valued by employees.
- Financial wellness: Student loan repayment assistance, retirement plan contributions, or even access to financial planning resources can be great resources.
- Voluntary benefits: Options like vision, dental, life, accident or disability insurance (where employees can buy into coverage at group rates) expand choices without adding significantly to the employer’s spending.
Explore an ICHRA or QSEHRA with Benafica
When group health insurance renewals feel unsustainable, it’s worth exploring flexible alternatives. You’ve probably heard of ICHRA (Individual Coverage Health Reimbursement Arrangement) and QSEHRA (Qualified Small Employer HRA) before. Both allow employers to set defined monthly contributions that employees can use to buy their own individual coverage, giving them more flexibility and you more control over costs.
But here’s the thing: these aren’t “set it and forget it” solutions. While HRAs empower employees with more choice, they also require them to become more active stewards of their own health needs. Without the right support, that transition can feel overwhelming.
That’s why Benafica is your guide. We don’t just set up a program and walk away. Instead, we partner closely with your company to design the right HRA strategy for your business, then gently transition your employees into the HRA landscape; providing education, transparency, and ongoing help so they feel confident navigating their new options.
At Benafica, we specialize in designing, implementing, and administering HRAs that balance cost control with employee satisfaction.
In one recent case study, we helped a 175-employee company save $137,000 annually, while 90% of employees were able to match or improve their coverage and lower their out-of-pocket maximums.
With open enrollment around the corner, now is the perfect time to get proactive about your benefits strategy. Give us a call today at 651-287-3253 or check out our ICHRA and QSEHRA pages for more information and how to get in touch.