Healthcare inflation just hit a three-year high, and Aon projects employer healthcare costs will climb past $17,000 per employee in 2026 — the steepest increase in 15 years. Yet one of the biggest drivers of those costs often gets overlooked: financial stress.
It’s not just about money. It’s tied to worse physical and mental health outcomes, skipped care, and higher cost medical claims that employers end up absorbing. For benefits leaders, the big question isn’t whether financial stress is driving up your costs. It’s how long you’ll wait to treat it like a serious health condition. Here’s why.
Financial stress spreads when it’s left untreated
Unlike other stressors that fade outside of work, financial stress follows employees everywhere — and its effects ripple across health, performance, and culture.
On health: Financial stress both creates medical needs and prevents care. Employees under financial strain are more likely to experience anxiety, depression, high blood pressure, and sleep problems. At the same time, financial strain drives them to delay care, skip preventive visits, or ration prescriptions — all choices that eventually drive higher healthcare costs.
On performance: Financially stressed employees are more distracted, less engaged, and more likely to miss work. In PNC’s 2025 Financial Wellness in the Workplace report, 68% of workers reported being “somewhat” or “very” stressed about their financial situation. That stress doesn’t just impact them — it weighs on colleagues, managers, and even the customer experience.
On culture and costs: Employees who are financially struggling are more likely to change jobs, even for a small pay increase or slightly better benefits. That means higher turnover, lower morale, and greater replacement costs. More than 80% of employees in PNC’s 2025 report said they are more likely to stay with an employer that offers financial wellbeing benefits, up from 78% in 2024.
Cost-sharing isn’t a long-term strategy
Mercer reports that 59% of employers will pass on some of their higher healthcare costs onto employees this year, up from 44% in 2024. For many, this means raising deductibles or premiums. But with 70% of employees living paycheck to paycheck, “cost-sharing” could backfire for everyone.
Mercer also found that leaders’ top health priorities over the next few years include:
- Keeping a closer eye on high-cost claims
- Making sure programs deliver value
- Expanding access to behavioral healthcare
With nearly two-thirds of large employers prioritizing behavioral health, supporting whole-person wellbeing is no longer optional. And while physical and mental health often take center stage, financial health is just as critical — and just as connected.
Treating financial stress like the health issue it is — and giving employees benefits that help them overcome it — is the next smart step for lowering costs and improving outcomes across the board.
Shared pain, shared stakes
The 2025 Alight Employee Mindset Study revealed that employees rated their financial wellbeing as the lowest of all wellbeing measures.
But unlike physical wellbeing, the area in which surveyed employees said time and motivation were their biggest barriers, employees said their financial wellbeing was blocked by cost, limited access to resources, and being unsure of what to do – all barriers employers can help employees overcome. Plus, employees want that support. The 2025 Bank of America Workplace Benefits Report found that twice as many employees now look to their employer for financial guidance compared to just two years ago.
Provide care that treats financial stress
Not addressing financial stress is no more sustainable for your business or your people than ignoring their physical or mental health – but it requires thinking beyond financial wellness. Employers that treat poor financial health like a serious condition with Brightside Financial Care see measurable improvements in healthcare costs, performance, and retention.
Through empathetic, human-led support and a platform of vetted solutions, including free and low-cost options employees won’t find on their own, Brightside helps workers overcome everyday money barriers, engage more fully with their other benefits, and build long-term financial wellbeing.
To learn more about Brightside Financial Care, schedule a demo with our team.