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Espresa's 2026 Benchmark Report: Benefit Costs and Solutions

The workplace landscape is evolving rapidly, with benefits costs emerging as the top concern for employers in 2026. According to Espresa's recent report, which analyzed over 550,000 employee claims worldwide, the pressure on companies to manage rising benefit expenses has intensified. Previously ranked sixth among employer concerns, rising costs of benefits have now taken center stage, affecting how organizations structure their employee benefits offerings.

Key Findings from the Report

Espresa, a leading personal benefits platform utilized by notable companies like Samsung and Nielsen, conducted this expansive analysis using data from claims exceeding $547 million managed across more than 100 countries. The results signal alarming trends: 64% of employers disclosed significant budget strain concerning benefit costs, a drastic increase in concern from past years.

In the past year, a staggering 59% of employees reported delaying medical care due to cost concerns. Moreover, 45% of workers feel financially burdened by healthcare-related expenses, including prescriptions. Interestingly, one in four employees indicated that access to GLP-1 medications directly influences their perception of their employer's benefits. The costs associated with GLP-1 drugs have skyrocketed, with employer spending per member doubling in just a year, representing 10.5% of all prescription claims — a rise from 6.9% in 2023.

The Challenge for Employers

Alex Shubat, co-founder and CEO of Espresa, acknowledged that the escalating costs, particularly for specialty medications like GLP-1s, create a significant challenge for HR and finance teams. With the dual pressures of retaining top talent while managing the bottom line, many employers struggle to find solutions that benefit both their workforce and the company's financial health. Shubat insists that cutting benefits isn't the answer. Instead, he advocates for maximizing the value of every dollar spent by giving employees the flexibility to choose what truly matters to them.

As companies grapple with these rising costs, the report notes a shift in strategy, with 57% of employers planning to rebalance and reallocate their benefits budgets over the next three years. They are increasingly looking toward Lifestyle Spending Accounts (LSAs) as a strategic option for this reallocation.

Growth of Lifestyle Spending Accounts

This trend is evident as Espresa clients added nearly $250 million in new LSA funding last year—a 45% increase compared to previous periods. The participation in these accounts grew sharply, with eligible populations jumping by nearly 50% between 2024 and 2025. The data also highlights a positive correlation between LSAs and employee retention; 95% of employers noted improved retention rates after integrating LSAs, with a median increase of nearly 20%.

Moreover, Espresa's international client base grew by 30%, with Brazil adopting LSAs five times more and the UK ranking as the second-largest adopter outside the US. The popularity of LSAs can be attributed to their ability to cater to diverse employee needs, as employees are able to choose spending on varied items, including tax preparation, financial planning, and wellness activities.

Understanding Employee Needs

The report also delves into the purchasing behaviors of employees when given a choice. Tax preparation services, financial planning, and hobby classes rank among the top choices, alongside wellness and fitness expenditures. This indicates a shift toward prioritizing benefits that resonate with employee preferences.

Even as LSA wallet funding decreased slightly in average amounts, overall participation continued to grow due to employers enhancing their offerings with unique spending options and flexible plan designs. Jackie Good, Global Wellbeing Manager at Nielsen, observed a significant shift in employee engagement after implementing Espresa's LSA options, noting that the participation in wellness programs diversified significantly.

In conclusion, the 2026 Lifestyle Spending Account Benchmark and Trends Report provides invaluable insights into the increasingly complex world of employee benefits. By understanding and adapting to the changing concerns and preferences of employees, businesses can leverage LSAs to create a compelling and flexible benefits program that enhances engagement, retention, and overall employee satisfaction.

For more details, companies can access the full report at Espresa's website.

About Espresa

Founded in 2015 in Palo Alto, Espresa has been at the forefront of delivering innovative personal benefits solutions. With a focus on unifying LSAs, well-being, family care, and specialty care, the company helps organizations engage diverse workforces while managing costs effectively.