Employers have their eyes on costs this enrollment season.
More than half of HR professionals (57%) said containing or controlling benefits costs is their top priority during open enrollment this year, according to a new SHRM pulse survey, conducted in September. That’s more than twice the share who listed improving benefits education as a top priority (24%).
Far fewer HR professionals said their top priority is increasing employee participation or engagement (11%) or simplifying plan choices (5%).
The findings come as health and benefits costs rise at steep rates. Employer healthcare costs are projected to jump 9.5% in 2027, pushing average spending above $19,000 per employee, according to recent data from consulting firm Aon. Higher healthcare utilization, an increase in chronic conditions, and the growing use of costly GLP-1 drugs are among the factors driving those increases.
“Costs are going up for the employer, and costs are going up with employees,” explained Hans Leida, principal and consulting actuary at Milliman, in Minneapolis.
As a result, many employers are increasing cost sharing for employees, with a survey of chief financial officers by Mercer finding that about half say they plan to shift more healthcare costs to employees this year.
Employers are coming up with other tactics to hold down costs. Some are being more deliberate about prescription drug benefits strategies — according to the 2026 SHRM Employee Benefits Survey, the percentage of employers utilizing independent pharmacy management programs jumped to 23% in 2026, up from 18% in 2025 — while other employers are putting in place measures around GLP-1 medications. A growing number of employers say they are planning to drop, or are considering dropping, GLP-1 coverage as prescribed for weight loss as costs soar. Others are increasing BMI thresholds or adding additional clinical criteria before employees can qualify for the drugs.
Experts say that because of high costs — and potential changes to coverage — transparency is especially key this enrollment season. Employers should explain not only what employees are being asked to pay, but also what the organization is doing to manage rising costs and how much it continues to contribute.
This year in particular, “employees may have an especially difficult time seeing the value of coverage when they are simultaneously watching their bills rise,” Leida explained. “It’s very hard for someone who might already be struggling to make ends meet to see the bill going up for their insurance coverage and maybe the benefits going down at the same time.”
HR leaders can also offer employees tips on how they can select and use their benefits to save money.
Benefits Education Still a Priority
Although controlling benefits cost is the top focus, ensuring that employees are informed about their offerings is still a priority for organizations this enrollment. “There’s still an education gap that’s significant,” said Courtney Perez, vice president of education and engagement at Atlanta-based benefits consulting firm OneDigital.
Using data, regularly communicating with workers, and ensuring that they have a place to go to find information on all their benefits and how they work is key, she said. In turn, she said, better communications can improve employees’ understanding of their benefits and help employees make decisions that can help both employees and the organization save money on healthcare costs.
"Transparency about preventive care exams, making sure employees are going to the right place for care, and having them understand what costs are for care is something [organizations] should really spend time on," Perez said.
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