Soaring Healthcare Costs Lead to Higher Enrollment in Alternate Medical Plans According to Alight's Annual Enrollment Analysis

Core Insights - Alight, Inc. released findings from its analysis of 9.5 million users of the Alight Worklife® platform during the 2025 annual enrollment period, highlighting significant trends in employee benefits enrollment and utilization of AI tools [1] Enrollment Trends - Employers have the opportunity to implement benefits strategies that cater to employees across all income levels, utilizing AI-powered tools for personalized guidance to enhance health strategies and support employee wellbeing amidst rising medical costs [2] - Enrollment via call remains low, while digital enrollments account for the high 90s percentage of total enrollments, indicating a preference for a digital-first approach combined with human support when necessary [3] Medical Costs and Enrollment Rates - Medical and dental costs are increasing, with the median cost for single employees rising by 9.8% in 2026 after a 5% increase in 2025, and the median cost for families increasing by 16.8% in 2026, a nearly 12-percentage point rise from 2025 [5] - There is a widening gap in medical enrollment rates between salary groups, with enrollment for employees earning $20,000-$39,999 dropping from 50% in 2025 to 47% in 2026, while enrollment for those earning $80,000+ remained stable at 86% [5] Alternate Medical Plans and AI Utilization - Alternate medical plan enrollment has doubled from 2025 to 2026, particularly among lower-income workers, providing more predictability in out-of-pocket costs despite similar or higher pricing compared to traditional plans [5] - The use of AI in supporting benefits journeys has increased significantly, with over 8.5 million interactions with an AI chatbot from October to December 2025, compared to approximately three million in the same period the previous year, indicating a growing trust in AI among employees [5]