MetLife reveals the top priority for employers in 2026

• Key Insight: Learn how controlling health costs overtook retention as employers' top benefits priority.
• What's at Stake: Rising care avoidance risks higher absenteeism, worsening outcomes and escalating employer costs.
• Forward Look: Expect a strategic shift toward targeted non‑medical benefits to curb costs and improve outcomes.
• Source: Bullets generated by AI with editorial review

Employers say controlling health costs is their No. 1 benefits objective in the new year, surpassing attracting and retaining employees and improving productivity for the first time since 2022, according to a new research by MetLife. 

The company's 2026 Employee Benefit Trends Study also revealed that 83% of employees say rising living expenses and medical costs are their top stressors. On average, employees miss 6.1 days of work due to health-related issues, and 50% avoided medical care for cost reasons. 

"What we're seeing in this year's Employee Benefit Trends Study is the cumulative effect of economic pressure on the workforce," said Todd Katz, head of Metlife's U.S. Group Benefits. "Those financial strains increasingly show up in their day-to-day well-being. That level of stress erodes well-being — only 44% of employees describe themselves as holistically healthy today — and has real consequences for attendance and focus at work."

Seventy-three percent of employers say non-medical benefits are the most cost-effective for boosting employee health, and 83% say they reduce medical costs. Employees who use five or more of them are 38% more holistically healthy, according to the study.

Katz talked about these new findings and more in a recent interview with Employee Benefit News. This interview has been edited for length and clarity. 

Why are half of employees avoiding medical care due to out-of-pocket costs — and what are the downstream risks?

With healthcare costs increasing, many workers either can't afford necessary care or are prioritizing other urgent financial needs to maintain stability. This is one of the most concerning findings in this year's study. When people skip routine or preventive health care, issues that could have been addressed early often become more severe, and more expensive, over time.

Read more: How to help employees avoid high medical bills

This creates a cascade of risks: Worsening health outcomes, more frequent or prolonged absences and ultimately higher medical costs for both employees and employers. It's one of the clearest signals that the traditional model of relying solely on medical coverage isn't enough. Employees need access points through non-medical benefits and preventive services that help them stay ahead of health issues rather than react to them.

How does economic uncertainty compound stress, burnout and health-related absences?

Economic uncertainty magnifies everything. Seventy-seven percent of employees tell us they're worried about broader economic conditions, and when you combine that with rising expenses, you can see a level of chronic stress that affects every dimension of health — physical, mental, financial and social.

Workers experiencing that strain are more susceptible to burnout, less able to stay on top of preventive care and more likely to experience interruptions in their health routines. This often begets absenteeism and disengagement, which employers feel acutely. These pressures don't exist in isolation — they stack, and when they do, they compromise both employee well-being and organizational performance.

Why have engagement, productivity and loyalty remained largely flat despite higher benefits spending?

What stands out in this year's study is the disconnect: 62% of employers increased their investment in benefits, and 60% expanded their voluntary offerings, yet key indicators like engagement, loyalty and productivity have essentially plateaued for three years running.

Read more: 60 seconds with Voluntary Benefits Adviser of the Year Dana Simms

This tells us that more benefits don't automatically translate into better outcomes. The real differentiator is whether those benefits are strategic, targeted and aligned with the workforce's actual needs. Holistic health improves when employees select the right benefits and have a great experience using them as they were intended. When employees are navigating economic stress and avoiding care, adding more options without improving accessibility or relevance won't move the needle. Employers need smarter, not just larger, investments.

Which non‑medical benefits are delivering the greatest gains in holistic health and medical cost reduction?

Several categories stand out, including accident, hospital indemnity and critical illness coverage, which help employees manage unexpected health events and costs. Another one is dental benefits, which play a central role in preventive care. 

How can HR leaders increase utilization of non‑medical benefits?

Employers can drive higher engagement by: 

• Tailoring offerings to the needs of different employee populations rather than taking a "more is better" approach.

• Simplifying access and communication so employees clearly understand what's available and how it fits into their daily lives.

• Emphasizing preventive care, which 62% of employees say depends on access to non‑medical benefits.

• Integrating benefits so they reinforce one another — financial wellness supporting mental health, disability benefits complementing medical care, for example.
  

When employees understand how their benefits can help them to navigate real-world challenges, not just medical events, and in holistic ways, they engage at much higher levels and outcomes improve accordingly.