MADISON, WI – M3 Insurance has released the 2026 edition of Momentum: An M3 Employee Benefits Trend Report, offering employers a data-driven look at the forces shaping healthcare spend and the strategies gaining traction as organizations prepare for 2027 and beyond.
For more than two decades, M3’s annual employee benefits trend report has helped employers understand the changing benefits landscape. The 2026 Momentum report continues that evolution, moving beyond traditional benchmarking to examine what is driving cost increases, how employers are responding, and where the market is headed.
The report shows employers are spending an average of $17,042 per employee annually on healthcare, with year-over-year increases averaging 7.46%. While that represents moderation from the prior year, costs remain elevated and continue to place pressure on employers and their workforce.
“The employers seeing the best results today aren’t waiting for healthcare costs to improve on their own,” said Brian Meyer, Director of Analytics and Underwriting and Partner at M3. “They’re using data to understand what’s driving spend, challenging traditional assumptions, and building multi-year strategies that position them for long-term success. That’s the momentum we’re seeing in the market.”
Key themes in the 2026 report include:
- Employer action to address rising healthcare costs through more intentional, data-backed benefits strategies
- Growing use of predictive analytics and data-driven point solutions
- Increased focus on high-performance networks, direct contracting, variable copay plans, and advanced care navigation
- Continued pressure from pharmacy trend, including specialty drugs, GLP-1 medications, gene therapies, and biosimilars
- Rising interest in alternative funding strategies, including captives, as the stop-loss market hardens
The full report is now available.
