Out of Pocket, Out of Touch: Why Workers Are Bypassing Your Benefits

At least 15% of U.S. employees are spending up to $1,500 annually out of pocket for health and wellness products their employer likely already covers — things like apps, devices and online tools. That’s the big finding coming out of a 2026 Employer Health Benefits Experience Survey of 2,000 workers by Castlight Health, a healthcare dashboard platform.

Additionally, the survey found:

• 61% of respondents spend at least $100 per year out of pocket on common benefit-provided items.
• 29% are spending more than $500.

The survey findings suggest there is a disconnect between employee benefit offerings and engagement, and how employees access health and wellness support.

“Employees are really overwhelmed by fragmented options and are increasingly defaulting to tools that feel simpler or more personalized and really easy to access in the moment,” said Amanda Zuravnsky, Castlight Health’s senior vice president of growth.

As workers dig into their own pockets to build their own solutions, HR and rewards professionals have an opportunity to better engage with workers on their benefits through education, awareness and personalization.

Access bonus Workspan Daily Plus+ articles on this subject:

• Disengaged Workers? It May Be Time for a Benefits Check-Up
• One Size Fits None: Designing an Effective Lifestyle Spending Account

Why Workers Are Passing

According to WorldatWork content director Alicia Scott-Wears, the Castlight Health survey makes it clear that when benefits are hard to find, static or disconnected from real-life moments, then employees default to faster, more intuitive consumer solutions, even if it is at a cost to them.

“What looks like underutilization may actually signal design flaws,” she explained. “Today’s workforce expects benefits to function like the rest of their digital lives: personalized, on-demand and easy to navigate in the moment of need.”

In addition, the Castlight Health report found a third of the surveyed workers are completely bypassing employer benefits to build their own do-it-yourself (DIY) ecosystems.

This reveals a usability problem, noted Scott-Wears.

“Employees are telling us with their behavior — and their wallet — that benefits aren’t being designed for how people actually make decisions: in real-time, under pressure and with a need for simplicity,” she said. “A shift to delivering more guided, flexible experiences can help to address this disconnect so employees aren’t left to build their own ecosystems and paying for them.”

Most often, employees don’t know what they have in their benefits plan unless the employer is being very proactive and communicating it in a clear, concise and ongoing way, added Maddison Grigsby, the director of employee experience and communication practice at risk management and consulting firm Gallagher.  

“When employees start going outside of the employer-sponsored program, especially if it’s something they could get within their benefits program, it signals more of a lack of education and awareness, and that responsibility falls on the employer to articulate,” she said.

Ease and instant accessibility also are expectations.

“When people are going out and building their own technology stack [of wellness apps and tools], they’re doing that because it’s really easy,” said Nicole Fink, Castlight Health’s vice president of product management. “You can sign up and get access within 30 seconds and start using the experience.”

What Workers Miss Out On

When workers opt out of using employer benefits, they likely also are missing important aspects of the employee value proposition (EVP).

“Benefits are a huge component of the [EVP],” Grigsby said. “When employees go outside of their employers for these things, the employer loses that connection with the employee.” 

This also can cause visibility gaps for employers, said Deb Smolensky, the vitality and well-being solutions global practice leader at workforce advisory firm NFP.

“When employees go around employer-sponsored programs, employers lose the visibility that makes plan management, strategy and vendor accountability possible,” she said. “They’re funding programs with no utilization data, no feedback loop and no way to measure what’s working.”

So, when support is not simple, intuitive and just-in-time, employees pay for outside solutions that feel easier, faster or more personal, Smolensky noted.

“That is when the value of the benefit breaks down, even if the benefit technically exists,” she said.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Well-Being