As employers brace for rising healthcare prices next year, many are finding that better investments in behavioral health could be one of the most effective ways to curb costs.
According to a recent survey from the Business Group on Health, employers should anticipate a 9% increase in healthcare costs for 2026. To manage those rising expenses without sacrificing much-needed support, benefit leaders should be sharpening their strategies to focus on the populations with the greatest health and wellness needs.
"A significant portion of that increased benefit cost is being driven by behavioral health needs and rising utilization of services that are geared towards a mild to moderate population," says Cooper Zelnick, CEO of addiction recovery service Groups Recover Together. "But those services haven't necessarily addressed the sickest, most costly segments of the population."
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Behavioral health issues like mental health and substance use disorders can be a drain on workplace productivity and increase healthcare spend if left unaddressed. According to the Center for Prevention and Health Services, untreated mental health concerns result in substantial costs for businesses — around $60,000 annually in absenteeism for one organization and $105 billion nationwide.
Yet despite this staggering price tag, behavioral health benefits like addiction and recovery services have received far less attention and investment than other wellness programs. Addiction treatment is often inpatient, meaning employees must take time off work, which can cost organizations in productivity and engagement. And the cost of these services can be steep, Zelnick says. Combined with high relapse rates, these factors have made employers hesitant to allocate their healthcare budgets to addiction care — a reluctance only heightened by an unsteady economy.
However, employers risk further increasing their healthcare spending in the long-run if they don't invest in preventive services and other more acute needs, as untreated substance use disorders often lead to repeated emergency visits, costly complications and more intensive medical care down the line.
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"Benefit leaders are facing some really difficult choices," Zelnick says. "How do they build more robust wellness benefits that are competitive and that meet the needs of their employees, without sacrificing their own financial stability or passing those costs on to their employees?"
Rethink your benefit strategy
In order to answer that question, leaders need to be ready to make certain compromises, Zelnick says. For example, other low-utilized, high-cost benefits might need to be cut in order to free up the budget to invest in more diverse options. Groups Recover Together, for example, provides group support meetings, prescription medication to manage withdrawal and support in setting and reaching goals.
Benefit leaders should also proactively collaborate with their providers to ensure that the solutions meet the needs of the audience they're looking to serve. Accountability is the key to getting the most out of their investments, Zelnick says.
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"Cultivate a plan design that includes a mix of value options and really hold insurance providers and the providers in the network accountable for the quality," Zelnick says. "Then, all that's left is to educate employees and reduce stigma at work."
Mitigating rising healthcare costs will be a lengthy process and it will call for a lot of lift from organizations across every industry, according to Zelnick, but the long-term pay out will be well worth the effort.
"In certain ways, 2026 is going to be enormously challenging," Zelnick says. "However, I do believe that this is an opportunity to innovate and do right by patients and build value based models that really drive impact."
