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Hub International’s 2026 Benefits Cost Trends Report

In its recent 2026 Benefits Cost Trends Report, Hub International Limited, a premier global insurance brokerage, has unveiled projections indicating that employers can expect an 8-10% rise in overall benefit costs for 2026. This increase is driven largely by escalating costs in medical and pharmaceutical benefits, which have become critical factors in budgeting and financial strategy for organizations across various sectors.

Key Findings from the Report

The report provides compelling data, highlighting specific trends that employers should be aware of when planning for the upcoming year:

• - Combined Medical and Rx Trends: The report projects a national increase of 8-10%.
• - Prescription Drug Costs: Expected to rise by 10-12%.
• - Medical Costs Alone: Anticipated to grow by 7-9%.
• - Dental Costs: Have a projected increase of 4-5%.
• - Vision Coverage: Expected to see a smaller rise of 2-3%.

Implications for Employers

Kirsten Bot, HUB’s National Director of Actuarial & Financial Consulting, explained that this report intends to empower organizations in navigating the complex landscape of employee benefits. She noted, “This information is vital for enabling informed decisions surrounding benefits strategies and for applying trends to the budget-setting process.” The upward trend in pharmacy costs appears particularly alarming, as it has emerged as the foremost driver of overall benefit costs.

Additionally, Michael Booth, President of HUB's U.S. Employee Benefits Practice, emphasized the importance of personalized employee benefits. “The future lies in tailoring benefits to meet the unique preferences of the workforce. Personalization not only helps employers align their offerings with what employees truly value, but it also promotes better engagement and satisfaction,” he stated.

The Workforce Vitality Gap Index

To complement the insights offered in the Benefits Cost Trends Report, Hub International has also introduced the 2025 Workforce Vitality Gap Index. This index reveals critical disparities between the benefits employers currently provide and those that employees prioritize most, showcasing a gap that could impact employee productivity and retention if not addressed.

About Hub International

Founded and headquartered in Chicago, Illinois, Hub International has established itself as a leading full-service global insurance broker. The firm specializes in risk management, insurance, employee benefits, and wealth management services. With over 20,000 employees distributed across North America, Hub employs a vast network of specialists who deliver custom solutions and unwavering support tailored for an ever-evolving market.

Moving Forward

As employers brace for these heightened costs, the emphasis on data-driven insights and strategic planning becomes critical. The challenges of rising benefit costs necessitate proactive management, ensuring that organizations can sustainably support their workforce's needs while navigating financial responsibilities.

For further information and guidance on managing rising benefit costs, employers are encouraged to access Hub's resources and consultation services aimed at fostering successful employee benefits strategies that are aligned with contemporary workforce expectations.

For media inquiries, please reach out to:

• - Marni Gordon (312-279-4601, [email protected])
• - Jessica Wiltse (312-596-7573, [email protected])