As employers face untenable benefits challenges such as soaring health care costs and an increase in the prevalence of chronic conditions in the workforce, they find themselves compelled to rethink prior strategies and take decisive – and sometimes bold – action.
As employers navigate these challenges they seek out and leverage collaborative relationships that value solutions-focused dialogue and approaches.
Business Group on Health has facilitated many of these crucial connections via opportunities for convening that foster employer engagement with peers, industry experts and diverse stakeholders. Through participation in Business Group on Health’s Institutes, Committees and Forums, webinars, Annual Conference, and select meetings in regions outside the U.S., business leaders reassess the status quo and develop real-world approaches that aim to meet evolving workforce needs.
Ballooning Health Care Costs Drive the Need for Value
Employers recently predicted 2026 cost trend increase at a median of 9%, offset to 7.6% with plan design changes, according to Business Group on Health’s 2026 Employer Health Care Strategy Survey. The impact is global, with 67% of multinational employers reporting that rising U.S. costs are now reshaping benefits strategies worldwide.
In this climate, employers must drive greater value in every health benefit decision. There is a growing call for strategies that deliver measurable health outcomes, put affordability at the center and emphasize transparency and accountability across the ecosystem. As a result, employers are turning their attention to value—cost-effectively achieving better health outcomes and improved patient experience by demanding clarity in pricing, optimizing care delivery and prioritizing solutions that support long-term sustainability and tangible benefits for both organizations and employees.
In this climate, employers must drive greater value in every health benefit decision. There is a growing call for strategies that deliver measurable health outcomes, put affordability at the center and emphasize transparency and accountability across the ecosystem. As a result, employers are turning their attention to value—cost-effectively achieving better health outcomes and improved patient experience by demanding clarity in pricing, optimizing care delivery and prioritizing solutions that support long-term sustainability and tangible benefits for both organizations and employees.
Collaboration Spotlight
With a heightened focus on cost and value, employers are collaborating to identify strategies that improve outcomes and affordability. Across this year’s Committee on Value Purchasing meetings, employers are discussing how to pair price transparency with enforceable performance terms and independent validation, so dollars drive quality, access and total cost of care. Recently, a Cost and Delivery Institute meeting resulted in organizations sharing approaches to contracting for advanced primary care and non-traditional health plans to expand choice and manage costs. Across the group, transparency, accountable partnerships and a willingness to pilot new approaches emerged as essential drivers of meaningful value.
Bold Solutions
Emerging value strategies are reshaping health plan design and delivery. Employers are adopting new value-focused strategies, including mandating the use of Centers of Excellence for certain surgical procedures and infusions, integrating virtual and in-person care to drive high quality referrals and partnering with vendors for coordinated experiences. Greater price transparency, emerging health plan features, and targeted navigation tools are helping organizations align plan incentives with better outcomes and sustainable cost management.
The Critical Cost of Pharmacy and the Demand for Transparency
Pharmacy costs have become one of the most urgent and growing drivers of overall health benefit spending. As pharmacy costs claim a larger share of total health spend, employers are emphasizing the need for greater transparency, accountability and collaboration among all stakeholders to create sustainable, affordable prescription drug benefits.
Collaboration Spotlight
Employers are anticipating an 11-12% pharmacy trend for 2025 into 2026. To support the sustainability of employer-sponsored prescription drug benefits in this environment, Business Group on Health’s Pharmacy Benefit Committee convenes employers, pharmaceutical companies, pharmacy benefit managers (PBMs), consultants and other key stakeholders multiple times a year. In a session earlier this year, the group dived deep into the impact of GLP-1 medications and available solutions to address the costs associated with this class of drugs. The conversation focused on transparency and viable pricing structures, as well as considerations regarding rebate opacity and sustainable access.
Bold Solutions
Building on these collaborative discussions, employers are moving from dialogue to action by rethinking how pharmacy benefits are structured and delivered. In practice, this has meant reevaluating existing contracts, putting programs out to bid and piloting alternative PBM models that emphasize transparency. Employers are also implementing targeted utilization management strategies, particularly in high-cost categories such as GLP-1 medications, to balance affordability with sustainable access for employees.
Holding Vendors Accountable
No one would be surprised to learn that managing vendor relationships and accountability is one of the most nuanced and demanding aspects of employers’ health and well-being programs. As organizations seek to provide high-value benefits, they must also balance complex contracts, a growing number of vendors, and the constant need for transparency, regulatory compliance and robust analytics.
Collaboration Spotlight
Employers at a recent Business Group Health Innovations Forum shared best practices to manage vendor accountability, including clear performance guarantees, financial penalties for underperformance and rigorous third-party evaluations. The discussion revealed challenges around vendor consolidation as well as on inflated savings claims and highlighted the importance of measuring return-on-income (ROI) and value beyond simple cost savings. This multi-pronged strategic approach was also highlighted during the Annual Conference where organizational leaders discussed the need for multivendor integration and data transparency to achieve better health outcomes and cost management.
Bold Solutions
To deliver real improvements in care, experience and cost management, employers have enhanced contract accountability and broadened the metrics to assess the true value of the programs. Employers desire more value-driven strategies and robust data and reporting capabilities from their partners, according to the 2026 Employer Health Care Strategy Survey. health industry partners must demonstrate how they support employers driving higher-value care, reduce overall health care costs and improve patient experience.
Driving Change Together
Business Group on Health empowers employers to confront systemic challenges, embrace innovation and share bold strategies through its proactive, multistakeholder community. Business Group members engage in candid and solution-oriented dialogues, develop meaningful collaborative relationships that affect actual change. For those eager to shape the future of employee health, well-being and workforce strategy, join the conversation – and make a difference.
Learn more about how Business Group on Health members drive change through collaboration — view our Institute and Committees and the Learning and Events Hub.
