This Year’s Open Enrollment Is All About Costs and Communication

As employers move into the back half of 2026, rising benefit costs are their number one concern, and 64% are reporting significant budget strain. This is according to a recent report by global employee benefits platform Espresa. The findings also revealed 59% of surveyed workers delayed medical care due to cost in the past year, and 45% reported feeling financially stretched by healthcare and prescription costs.

So, the benefits and financial picture for employers and workers isn’t exactly pretty.

According to Sue Holloway, a content director at WorldatWork, those rising costs are driving tough rewards plan decisions. As you muddle through planning for this fall’s open enrollment season, she recommended that you focus your rewards strategies around data and outcomes, not just offerings.

“There continues to be a real need to balance cost sustainability with employee value, and ultimately, it’s about offering benefits that align and adapt to both workforce needs and business strategy,” Holloway said.

To help you prepare for open enrollment (and consider rising costs, including a projected 9% uptick in 2027 for healthcare-related expenses), this article shares insights on how to handle the costs and conversations that are upcoming.

Access bonus Workspan Daily Plus+ articles on this subject:

• Close Open Enrollment Connection Gaps with Targeted Messaging
• ‘How Much Will This Cost?’ Clarifying Healthcare Pricing for Employees 
• Use This Cost Worksheet to Help Employees Select Healthcare Options

Seeking Feedback to Inform Your Plan

Without a deliberate plan to address rising costs driven largely by specialty drug utilization, healthcare expenses will continue to balloon, said Espresa CEO Alex Shubat.

Therefore, HR leaders should learn what organizational employees are actually using and what will support them in the long –term — whether that’s physical wellness benefits, mental health resources or other needs, he said.

Shubat also noted employee benefit surveys should be distributed several months in advance of open enrollment (July is a prime month for outreach) to allow time to act on any given feedback.

“Otherwise, organizations risk creating frustration by gathering input they don’t have the resources to implement,” he said.

Early Communication Is Key

Don’t assume your employees understand their benefit options, Holloway said. Surveys annually call out that confusion and underutilization are major issues,.

That’s why early and clear communication is critical, said Maddison Grigsby, a U.S. communications consultant at risk management and consulting firm Gallagher.

For instance, start with a review of last year’s messages and campaigns, and any metrics you have in terms of their effectiveness.

“For any communication that didn’t garner much engagement, cut it,” Grigsby said. “For the materials that were the most engaging and connected the most with the audience, amplify it.”

Additionally, don’t strive so much to be comprehensive that you fail to be comprehensible, Grigsby said.

“A lot of times, overcommunication is just as bad as poor or no communication,” she said. “People get overwhelmed, tune out or develop a negative perception. Instead, make your key messages clear and simple, and reiterate them across multiple channels.”

Leveraging AI for Support

Artificial intelligence (AI) also is becoming a game changer for personalization and real-time decision support, said Holloway.

“Leverage chatbots and digital assistants to answer questions and guide employees — now and through enrollment,” she said. “The key is using tech to simplify the experience, not add complexity.”

Grigsby suggested using an AI large language model (LLM) to simplify messages by prompting it to “simplify, then simplify again.”

Shubat added AI can help HR teams strengthen their strategy by reviewing communication plans, identifying gaps in open enrollment schedules, analyzing employee feedback and survey data, and helping organize benefits fairs.

He offered the following sample AI queries:

• “Review my communications plan. Is there anything I am missing?”
• “Review my open enrollment schedule and plan. Is there anything to improve?”
• “Based on all prior requests and surveys, what are we missing or need to improve?” (Upload as many supporting files into the AI tool as possible prior to query.)
• “Help me organize a benefits fair.” (Upload vendors, location, schedules, etc.)

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