The Healthcare Cost Crisis is Reshaping Employer Benefits Strategies, Brown & Brown Survey Reveals

Employers identified managing rising benefit costs while preserving employee value as their biggest benefits-program challenge.

Rhea-AI Summary

Brown & Brown (NYSE: BRO) released its 2027 Employer Health and Benefits Strategy Survey, examining employers’ responses to rising healthcare costs. A separate analysis of its customer base found employers anticipate average annual healthcare cost increases of 10% in both 2026 and 2027. Among survey respondents, 44% ranked controlling organizational health benefit costs as their top priority.

Benefits audits, reviews of pharmacy benefit manager vendors or pricing models, and stronger data analytics each drew 83% support as cost-containment strategies. Well-being programs form part of healthcare strategies for 78% of employers; 79% of that group plan budget increases. Nearly half of respondents (45%) cover GLP-1 medications for weight loss, and more than 77% of that group impose restrictions. The survey data will be incorporated into Brown & Brown’s COMPASS intelligence platform.

Key Figures

Anticipated healthcare cost increase: 10% annually Top organizational priority: 44% Leading cost-containment strategies: 83% each +5 more

Anticipated healthcare cost increase

10% annually

Employers anticipate this increase in both 2026 and 2027

Top organizational priority

44%

Surveyed employers named controlling organizational health benefit costs as their top priority

Leading cost-containment strategies

83% each

Benefits audits, evaluating transparent PBM vendors or pricing models, and stronger data analytics

Well-being programs in healthcare strategies

78%

Surveyed employers

Planned well-being budget increases

79%

Employers whose healthcare strategies include well-being programs

Behavioral health access priority

80%

Employers prioritizing improved access to behavioral health providers

GLP-1 weight-loss coverage

45%

Survey respondents cover GLP-1s for weight loss

Restrictions on GLP-1 coverage

More than 77%

Employers covering GLP-1s for weight loss

Historical Context

1 past event · Latest: Oct 22

1 event

1. Oct 22

   Platform launch

   24h Move

   +5.6%

   Introduced COMPASS to connect insurance data, analytics and AI-enabled decision support.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

glp-1, pbm, medical stop-loss, prior authorization

4 terms

glp-1 medical

"GLP-1 weight-loss medications have become a key consideration"

GLP-1 (glucagon-like peptide-1) is a natural hormone in the body that helps regulate blood sugar levels and appetite. Its significance to investors lies in its role as the basis for a class of medications that address conditions like type 2 diabetes and obesity, which are large and growing markets. Advances or investments in GLP-1-based treatments can signal opportunities in healthcare innovation and potentially impact pharmaceutical companies’ growth.

pbm technical

"Evaluate transparent PBM vendors or pricing models"

A PBM (pharmacy benefit manager) is a company that manages prescription drug benefits for insurers, employers and government plans, negotiating prices with drug makers and pharmacies and deciding which medicines are covered. For investors, PBMs matter because they sit between drugmakers and patients and can influence drug prices, volumes and profit margins across the healthcare system—think of them as the gatekeeper and negotiator that can shape revenue flows in the pharmaceutical supply chain.

medical stop-loss financial

"Evaluate medical stop-loss plan design"

Insurance bought by employers or plan sponsors who self-fund their group health plans to protect against unexpectedly large medical claims; the stop-loss policy reimburses the sponsor for claims that exceed a pre-set attachment point. There are two common forms: specific (or individual) stop-loss, which reimburses costs for a single enrollee once that person's claims exceed the specific attachment point, and aggregate stop-loss, which reimburses the sponsor when total plan claims for a period exceed a higher aggregate attachment point. Stop-loss does not replace primary health coverage for employees but acts as reinsurance to limit the sponsor's financial exposure to high-cost claims.

prior authorization medical

"restrictions beyond prior authorization"

Prior authorization is a process where a health insurance company requires approval before covering certain medical services or medications. It functions like a pre-approval step, ensuring that the treatment is necessary and appropriate before expenses are paid. For investors, understanding prior authorization is important because delays or denials can impact healthcare costs, provider operations, and the financial stability of related companies.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Rising medical and pharmacy costs driving cost-containment measures as employers balance affordability and employee well-being

DAYTONA BEACH, Fla., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE: BRO), a leading insurance brokerage firm, today released the findings of its annual Employer Health and Benefits Strategy Survey.

The 2027 edition of the survey reveals how employers are combating steeply rising medical and pharmacy costs. Employers anticipate healthcare costs will rise an average of 10% annually in both 2026 and 2027, a Brown & Brown analysis of its customer base found.

According to the Brown & Brown survey, these rising costs are prompting more aggressive reviews of core benefits, changing plan designs, driving GLP-1 coverage restrictions, and strengthening the focus on physical health and well-being programs to manage long-term costs.

Controlling benefit costs is top concern, maintaining employee value is biggest challenge

In last year’s survey, cost-containment, for both organizations and their employees, ranked nearly equal at the top of employers’ strategic priorities list. The 2027 survey results tell a different story: just under half (44%) of surveyed employers list ‘controlling health benefit costs for the organization’ as their top priority, notably above ‘controlling health benefit costs for the employees.’ (See Figure 1)

Employers also report ‘Managing rising benefit costs while preserving employee value’ as the number one challenge in developing benefits programs today.

“Employers have reached a critical point in the healthcare cost crisis. They’re being forced to make increasingly difficult decisions about how they invest in employee health benefits,” said Chana Bieker, senior vice president – benefits, national account leader at Brown & Brown. “Just two years ago, attracting and retaining talent was employers’ top priority. In the 2027 edition, it is third, while controlling organizational healthcare costs is the clear number one. This shift reflects the severity of evolving economic and market challenges, the mounting financial pressure organizations are under, and the growing urgency to find more sustainable approaches to healthcare spending.”

Top five strategic cost containment initiatives employers are prioritizing

In 2027, employers are taking a much closer look at where their dollars are going and how those investments can deliver long-term value. Cost containment strategies are increasingly focused on reducing unnecessary spending, improving efficiency and getting more value from existing benefits programs.

The top five cost containment strategies:

1. Benefits audits (claims, pharmacy and/or clinical): 83%
2. Evaluate transparent PBM vendors or pricing models: 83%
3. Stronger data analytics: 83%
4. Evaluate medical stop-loss plan design: 82%
5. Medical and/or pharmacy RFPs: 82%
   

A continued focus on employee well-being and mental health

Despite the focus on cost control, employers remain committed to supporting employee well-being. A majority (78%) say well-being programs are part of their healthcare strategies, and 79% of this cohort plan to increase related budgets. Mental health support is an additional focus, with 80% prioritizing improving access to behavioral health providers.

Employers balance GLP-1 costs and employee access

GLP-1 weight-loss medications have become a key consideration in employers' broader cost containment strategies. Growing employee demand, which shows no signs of slowing, puts additional pressure on employer healthcare budgets. Increasingly, employers must strike the difficult balance between access to GLP-1s and controlling costs.

Nearly half of survey respondents cover GLP-1s for weight loss (45%). However, for this cohort, more than 77% have restrictions in place. A significant percentage of these employers have restrictions beyond prior authorization, such as having to meet certain clinical criteria above and beyond FDA guidelines (45%) and required participation in a lifestyle, behavior or weight management program (33%).

The Employer Health and Benefits Strategy Survey data will be mapped into Brown & Brown’s recently launched intelligence ecosystem COMPASS, which provides critical market context to support more informed decisions that can lead to lower costs and stronger insurance outcomes for companies.

Upcoming webinar: Employer Health and Benefits Strategy Survey, 2027 Results Review

Members of the media are invited to join a webinar discussing the survey results on Wednesday, November 11, 2026, 2:00 – 3:00 pm ET. During the webinar, Brown & Brown Employee Benefits specialists will dig into survey results and analysis regarding employer priorities, cost containment strategies, approaches to GLP-1 coverage and overall pharmacy benefit management, AI’s impact on benefits strategy, digital health offerings, and more.

All registrants will receive a replay link and copy of the presentation.

Register here: Employer Health and Benefits Strategy Survey: 2027 Results Review

About the Brown & Brown Employer Health and Benefits Strategy Survey, 2027

The Brown & Brown Employer Health and Benefits Strategy Survey, 2027 gathered responses from nearly 1,000 employers. Participating employers had at least 200 employees based in the US. The survey explores a wide array of key strategic issues and opportunities facing employers who sponsored employee health and benefits plans. The survey was fielded from July 21 through August 28, 2026. The margin of error is +/-3%.

Download the Executive Summary here.

About Brown & Brown

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm delivering comprehensive and customized insurance solutions and specialization since 1939. With a global presence spanning 700+ locations and a team of approximately 23,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey. Learn more at BBrown.com.

Contacts

Media Contact:
Bruce M. Lee, Senior Director, PR & Media
bruce.lee@bbrown.com
C (203) 895-2214

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c7500ac6-71d9-472d-91ea-5f16730b0319