U.S. employers started this year expecting their healthcare costs to jump 8% — the highest increase in more than a decade, according to the Business Group on Health (BGH). Unfortunately, that expectation became reality. Even more concerning, BGH’s president and CEO said they don’t “anticipate trend abatement for 2026.”
It’s no wonder that WTW’s 2025 Benefits Trends Survey found that 90% of employers now say rising benefits costs are their top challenge, up from just 67% the year before. That steep climb in urgency is a clear signal that now’s the time to take a close look at whether your existing financial wellbeing benefits are truly helping to curb healthcare costs, and deliver measurable outcomes and ROI.
Read on to explore why healthcare costs will soon become an even bigger problem and how prioritizing comprehensive financial support in your benefits strategy can offset the impact.
Upcoming Medicaid cuts expected to drive employer healthcare costs
The sustained surge in healthcare costs is driven by a combination of factors outside of employers’ control, including increasing disease rates among younger populations, an aging workforce, and rising prescription drug costs. But new macroeconomic issues such as shifting public-payer costs will soon create an even bigger problem for employers.
For example, as Employee Benefits News recently reported, the “One Big Beautiful Bill” includes deep cuts to Medicaid, which could leave an additional 12 million low-income Americans (many of whom are frontline workers) without coverage by 2026.
Given that only 63% of hourly employees say they can currently afford the healthcare their families need, according to Mercer, this will become particularly problematic for employers with large frontline workforces, many of whom are already financially vulnerable.
If these employees lose Medicaid coverage, some will likely go uninsured altogether due to cost, while others will skip preventative care for the same reason. Unfortunately, this can create situations where medical needs that could be easily and affordably treated spiral into urgent and expensive healthcare issues.
In other cases, more employees may enroll in employer-sponsored plans, driving employer costs higher. At the same time, more providers will shift the cost burden onto private plans, inflating premiums.
Prescription prices are an increasing employee burden
As if the increasing cost of medical attention isn’t enough, BenefitsPro recently reported that nearly 40% of Americans are worried about affording their medications, up from 27% last year.
To make their prescriptions less of a financial burden, 20% said they ration medication, while 13% stopped taking them entirely. Employees also reported draining savings or taking out loans to pay for their prescribed medications.
When employees are choosing between their health and other financial needs, the effects compound. Missed doses of necessary medication can lead to higher medical bills if a condition gets worse without treatment. Employees may also lose income if they become so ill that they are forced to take time away from work. In turn, this can cause them fall behind on other critical bills and/or push them into severe financial illness.
How employers can reduce healthcare cost impact
Despite the bleak stats and headlines, employers aren’t entirely powerless to manage their healthcare costs or the impact on their employees – and it doesn’t require a massive health plan redesign. Here are two ways employers can proactively focus on removing the barriers that prevent employees from managing their physical, mental, and financial health.
1. Help employees navigate what’s available
You invest a considerable amount of time, money, and resources into selecting benefits that will support employees’ needs. But they only deliver value when employees understand how to access and use them.
Studies show that cognitive processing is compromised when a person is under stress. It hinders their ability to make sound decisions and increases the likelihood that they turn to habitual behaviors, make impulsive choices, and underestimate risks.
Because physical and mental health and financial stress are all correlated, employees experiencing healthcare affordability challenges need human-led, unbiased support that helps them find and use the best options available to them. WTW also called this out directly, urging employers to prioritize benefit personalization, navigation, and proven behavioral science methods such as nudges that make it easy for employees to take positive actions, especially when they are under stress.
That’s one of the reasons Brightside Financial Assistants help employees navigate a range of vetted free and low-cost solutions, including existing employer benefits, to alleviate their struggles.
For example, Financial Assistants help employees:
- Identify medical payment plan options based on their unique situation
- Evaluate the impact of selecting or changing employer benefits during open enrollment season and/or qualifying life events
- Understand how workplace benefits such as a health savings account or other free savings tools could help them better manage healthcare expenses
- Connect with employer-provided resources like an EAP, hardship fund, and mental health benefits
- Navigate additional employer benefits such as a medical leave of absence or short-term disability when appropriate
- Access low-cost and/or free resources to help everyday money problems, so healthcare costs aren’t such a strain
By meeting employees where they are and integrating with other employer benefits, Brightside helps them get real value from their benefits, without adding burden on your HR team.
2. Provide real-time financial help for healthcare cost pressures
An employee who is choosing between two important needs – such as paying rent or tending to a medical issue – requires solutions beyond advice, a plan, a webinar, or a budgeting tool.
That’s why Financial Care goes deeper to connect employees with safe solutions that directly address their issues and protect their financial health. With 73% of employers surveyed by WTW reporting that they are actively seeking benefit vendors that can deliver measurable outcomes, Financial Care is the kind of high-impact investment that delivers these results, and why Amazon and other innovative Fortune 500 employers offer it to their frontline employees.
Meet some Brightside users that we’ve helped with healthcare costs:
“Myra” (real name has been changed to protect privacy)
When cancer forced Myra to take leave from work, bills piled up fast. Her Brightside Financial Assistant connected her with a local cancer resource that provided financial help for rent, utilities, and groceries, and helped her navigate her short-term disability benefits.
“Brightside has been a huge blessing during a very tough time.” — Myra
“Taylor” (real name has been changed to protect privacy)
Taylor turned to costly cash advances to cover an unexpected car repair and medical bills. Before long, the fees left him with no money for part of the week.
His Brightside Financial Assistant helped him find an affordable and safe loan option that helped him break free of the cash advance cycle, save money on interest, and pay off his medical bills.
“You offer a great service. I appreciate all the work you’ve done to help me.” — Taylor
“Alyssa” (real name has been changed to protect privacy)
After a hospital stay, Alyssa fell behind on bills and racked up $19,000 in credit card debt. Her Brightside Financial Assistant helped her enroll in a program that lowered her insurance costs and consolidated her debt, dropping her monthly payments from $900 to $580.
“I feel very relieved. Thank you for all of your help.” — Alyssa
Financial stress drives healthcare costs. Financial Care can help.
These are just a few examples of the healthcare-related challenges many employees face quietly, and demonstrate how the right financial benefit can turn things around.
You don’t have to fix the healthcare system to create impact. With Financial Care you can reduce your healthcare costs, improve retention, and build a stronger, healthier frontline workforce.
