Amwins Benefits Debuts Employee Benefits Report, Sees 6% to 9% Medical Cost Rise in 2026
Updated
Updated · ProgramBusiness · May 27
Amwins Benefits Debuts Employee Benefits Report, Sees 6% to 9% Medical Cost Rise in 2026
1 articles · Updated · ProgramBusiness · May 27
Summary
Amwins Benefits on May 26 published its first State of the Market Report spanning the full employee-benefits landscape, expanding beyond its prior stop-loss-only annual review with data from a $11.7 billion book of business.
Carriers in the report project 2026 medical plan cost trends of 6% to 9%—the highest annual renewal outlook in more than a decade—with formula renewals running 10% to 12% and prescription drugs driving an estimated 11% increase.
Specialty drugs account for under 2% of prescriptions but nearly 50% of drug spending, while self-funded employers face a split market: weaker groups are seeing capped hikes or declinations, but profitable groups can still win flat or lower rates.
Small and mid-market employers are also confronting above-average increases as carrier losses, weaker risk pools and network disruptions push some toward level-funded, alternative-risk and captive arrangements.
Beyond core medical coverage, the report says retiree and ancillary benefits face separate strain, while stop-loss is growing at a 15% CAGR toward a projected $113.5 billion market by 2034.