Employees are ditching benefits for their own health apps

• Key Insight: Discover how employees are bypassing employer benefits to build personal digital health ecosystems.
• What's at Stake: Reduced program ROI and retention risks if benefits remain inflexible and irrelevant.
• Forward Look: Prepare for demand for flexible wellness allowances and a la carte benefit models.
  Source: Bullets generated by AI with editorial review

Most employees are bypassing employer-sponsored programs and benefits and instead building their own ecosystem of digital tools, oftentimes at their own expense, a new survey revealed. 

Castlight Health's 2026 Employer Health Benefits Experience Survey shows a widening disconnect between the benefits companies offer and what employees actually use. These findings come despite continued significant investment in digital health and well-being programs.

According to the survey, which polled around 2,000 U.S. employees, only about one-third clearly understand what benefits are available or use them regularly. More than half use at least one consumer health or wellness app, and 46% pay out of pocket for solutions that feel more relevant or easier to use. 

Read more: Employees want benefits to be an a la carte experience

Sixty-one percent spend at least $100 annually, with nearly a third topping $500 and 15% spending up to $1,500.

"Employees aren't going rogue. They're going to what's familiar," says Amanda Zuravnsky, senior vice president for growth at Castlight. "That's the gap that employers really need to be thinking about closing." 

Other key survey findings

According to the survey, employees want greater flexibility in their benefits, and it influences retention. More than 80% said they'd be more likely to stay with an employer that offers a flexible wellness allowance.

"I don't think employees are asking for more benefits," Zuravnsky says. "I think they're asking for benefits that fit their life, and those are really different asks."

Nicole Fink, vice president of product management at Castlight, says there is a growing number of people who want choice when it comes to benefits and they also want greater control over their own health. 

Fink says it's very common for employers to offer incentives to employees who complete a health risk assessment or undergo biometric screening. "There's a lot of money going into those two tasks but for me as an employee, how do those two things really benefit me?" Fink says. 

Read more: AI startups changing the benefit industry in 2026

On the other hand, Fink added, "if my employer instead gave me credit to get an Apple Fitness subscription that connects with my Apple Watch and my phone and has some really fun workouts, I may be more motivated to make healthy lifestyle choices with that level of flexibility and choice."

The rise of DIY benefits is not uniform across the workforce, the survey revealed. Different groups are building their own ecosystem based on age, income, education and employment status, with the youngest workers leading the DIY movement. 

Employees between the ages of 18 and 34 are most likely to use digital health tools and subscribe to fitness and mental health apps. Older employees — mostly those age 55 and up — typically prioritize solutions that support management of chronic conditions such as hypertension, diabetes and musculoskeletal care. 

"Gen Z is the first digital-native generation entering the workforce," Fink says. "They are getting inundated day in and day out with social media, TikTok, Instagram, and bombarded with health and wellness apps and consumer-grade experiences. When that new diagnosis comes in, that's what's top of mind for them."

The survey also found that open enrollment rarely drives benefits usage, with just 7% of respondents citing it as the trigger. More common triggers were doctor visits (47%) and unexpected needs (22%) — moments when employees often turn to consumer tools instead of employer programs. 

"They engage when it matters to them," Fink says. "Open enrollment is a system-driven engagement timeline, and people don't get sick at those intervals."

Looking at the survey results as a whole, Fink says benefit leaders should double down on flexibility and choice in how they design incentives and build their programs. 

"There are so many dynamics of equity alone and ensuring that the entire employee population is cared for, but putting extra effort in at the beginning will pay dividends in the long run," Fink says, "not only by way of health, but also benefit utilization and employee satisfaction."