What Benefits Benchmarking Tells You That Renewals Don’t  

MARCH 3, 2026

Many health plans experienced higher-than-expected renewal increases for the 2026 plan year, driven by several complex cost pressures. Even employers that had prepared for higher premiums were caught off guard by the pace and scale of change.

While renewals confirm how much costs are rising, they often fail to explain why — or what options are available beyond cutting benefits or shifting more costs onto employees.

Benchmarking provides the critical context employers need to determine next steps. By comparing plan designs, funding approaches, contribution strategies, and usage patterns with other similar employers, benchmarking helps distinguish broad market forces from plan‑specific issues and highlights targeted opportunities to reduce costs without sacrificing competitiveness.

What Your Renewal Increase Doesn’t Explain

A renewal notice reflects the outcome, but it leaves critical questions unanswered — questions that matter when determining whether action is needed:

• Market alignment: Is the increase typical for the business size, industry, funding type, and region — or an outlier? Benchmarking shows whether a benefits plan falls within market norms and where targeted actions could lower the trend.
• Driver mix: Which factors are driving the increase? Common contributors include GLP‑1 utilization, high-cost claims, and rising demand for behavioral health services — details not visible on a renewal cover page.
• Macro vs. controllable: While some inflation is systemic, other drivers — such as contributions, plan design, and pharmacy management — remain within an employer’s control. Benchmarking helps distinguish between them.

Where Benchmarking Adds Clarity (and Confidence)

Beyond explaining the increase, benchmarking supports more confident decision‑making by putting cost, value, and competitiveness into context:

1. Total employee cost — not just premiums: Benchmark payroll contributions and out‑of‑pocket exposure to avoid cost shifts that damage retention. Use market guardrails, then refine by labor and wage mix.
2. Plan richness and contribution strategy: Compare actuarial value, deductibles, copays, and dependent tiers to rebalance value while remaining competitive.
3. Peer‑tested levers: Identify contribution and network strategies that similar employers are using effectively to support employer decision-making.

With annual health plan renewals expected to remain higher than normal for the foreseeable future, benchmarking helps shift the conversation from reactive cuts to thoughtful, data‑driven design.

How Do Your Benefits Compare?

Employers today must balance rising healthcare costs, shifting workforce expectations, and increasing pressure to demonstrate ROI. To make confident, future-focused decisions, you need clear, data-driven visibility into how your benefits compare to the market.

USI Insurance Services’ Benefits Benchmarking Study provides that clarity — giving you a decision‑ready view of your benefits by showing how your plan design, contributions, and employee experience all compare to similar employers. It also delivers a prioritized action plan to optimize spending without sacrificing competitiveness.

Interested in participating in USI’s 2026 Benefits Benchmarking Study and getting a custom plan performance assessment? Contact your local USI benefits consultant to request a survey link for your organization.