When you add new benefits at renewal, it's easy to skip a look at the programs you already have. With health costs climbing again for 2027, that review belongs on your renewal checklist.
Health benefit costs per employee are expected to rise 8.2% on average in 2027, according to a September 2026 Marsh survey, and 59% of employers plan cost-cutting changes, including plan designs that raise employees’ out-of-pocket costs.
If you're asking your people to pay more, you should be able to tell them what the rest of the benefits budget buys.
The benefits year runs on fixed milestones with the medical renewal, open enrollment, and many vendor pitches in between. Each one offers a chance to ask what to add or change, but you’re probably not often prompted to stop and check whether what you already have is working.
When a new need comes up, such as caregiving support or financial coaching, a new vendor fills it. The older programs keep renewing on their own contract dates, and too often, no one is assigned to decide whether they continue. An annual review of those programs could yield important savings.
Add-on programs like these are common.
In KFF's 2025 survey, 56% of firms with 10 to 199 workers and 83% of larger firms offered at least one wellness program, such as smoking cessation or weight management.
Mercer's June 2026 survey found that 58% of large employers provide elder care support.
SHRM's 2026 survey tracks more than 230 distinct benefits.
Start with four numbers for every program you pay for:
Annual cost. Add up what you paid over the last plan year, including per-employee and administrative fees.
Contract end date. Put every end date on one calendar and be prepared for an informed renewal conversation.
Last twelve months of utilization. Find out how many employees used it and how often. Request the report from the vendor, or from your benefits advisor if the vendor reports to them.
Who is eligible. Note which employees can use the program, such as full-time staff, certain locations, or dependents. Then compare that list to who used it to see whether low use comes from low interest or limited access.
Low use shouldn't be a determining factor on its own. A program that a small group relies on heavily, such as fertility coverage or caregiver support, can matter a great deal to the people using it. The four numbers give you a starting place for deciding which programs to discuss with your benefits advisor.
As you evaluate what you have, you'll start to see where programs overlap. Mercer's Haleigh Burnett and Megan Neumann noted in March 2026 that employers often pay several partners for similar services, which raises the risk of duplicate costs and makes it unclear who's accountable for results.
Overlap also makes it harder to tell what each program is doing for you, because a vendor's reported savings may partly reflect the work of other partners serving the same employees. If two programs claim credit for helping the same people, their reports can't tell you what either one contributes.
To find overlap, group your programs by the needs they address, such as mental health or managing a chronic condition. Where two programs serve the same employees for the same need, mark the pair for a conversation with your benefits advisor.
When a review belongs to everyone, it tends to stall, so assign one owner, such as the person who manages benefits day to day. Give them authority to request data from finance and each vendor, and have them start well before the earliest contract end date.
The owner then brings the finished inventory to your benefits advisor with three things:
Your benefits advisor can then help you decide which programs to keep, change, or retire.
Before you sign the next renewal, conduct a thorough audit of your current programs and decide which ones stay and which need to move on. Give your employees benefits they need, want, and use while keeping your costs in check.
Content provided by Q4intelligence
Photo by fizkes