With medical costs expected to climb steeply in 2026, employers are increasingly turning to insurance-driven health benefit strategies to control spending and improve access to care.
According to a new report by Alliant Insurance Services and the National Association for Workplace Health Care (NAWHC), more organizations are adopting direct contracting arrangements and employer-sponsored health centers to manage medical, pharmacy, and occupational health costs.
The 2025 National Worksite Health Center Survey Report found that 28% of employers with existing centers plan to open new locations in 2026, while 54% will expand services or staff. The shift highlighted a broader move among insurers, brokers, and employer benefit consultants to use direct contracting as a tool for long-term cost containment and risk management.
Patient access and care quality are emerging as key priorities shaping insurance-funded employer health programs. Nearly all employers (98%) surveyed cited access as a primary goal, an issue linked to physician shortages and rising out-of-network costs that often drive up claims.
By offering onsite or near-site primary care, employers can reduce dependency on external healthcare networks, lowering claim frequency and improving claims predictability for insurers.
While 100% of respondents said improving care quality was their top objective, 89% still viewed reducing medical and pharmacy costs as a major reason for investing in these models. Many employers are also extending access to dependents and retirees, broadening coverage while retaining cost control through self-funded or partially self-insured arrangements.
David Keyt, national director of Employer Health Centers at Alliant, said employer health centers form a foundation for comprehensive workforce health strategies. He noted that employers are facing double-digit medical cost increases and are seeking practical solutions. Directly contracted worksite and near-site care models, he said, have shown consistent returns on investment through improved health outcomes and cost savings.
According to Larry Boress, executive director of NAWHC, maintaining a healthy and productive workforce is essential across industries. He said employers can no longer rely on the broader healthcare system to address issues of cost, quality, and access, and must instead take proactive steps through benefit strategies that directly engage with insurers and providers.
