Conduent Survey Reveals Employers Struggling to Balance Rising Healthcare Costs and Employee Expectations for Comprehensive Health & Wellness Benefits
MWN-AI** Summary
Conduent Incorporated recently released findings from its 2026 Blueprint for Smarter Health Survey, highlighting the critical challenges employers face in balancing rising healthcare costs against increasing employee expectations for comprehensive, personalized benefits. With a staggering 69% of employers anticipating medical trend rates exceeding 7%, the demand for effective cost-management strategies has never been more urgent. The survey reveals that 65% of employers view benefits as essential for attracting and retaining talent, emphasizing their importance in organizational strategy.
In response to these pressures, 71% of companies are adopting AI-driven tools to assist employees in selecting optimal benefits options, while 64% plan to introduce virtual assistants for navigating benefits. However, surpassing employee expectations, particularly regarding mental health and wellness programs—cited as a priority by 65% of respondents—remains a significant hurdle.
Amid these challenges, Conduent advocates for leveraging data, automation, and AI to both manage costs and enhance employee engagement with benefits. "Healthcare costs will continue to rise, and organizations must balance cost containment with comprehensive wellness benefits," said Kimberly Marshall, Conduent's Chief Commercial Officer. The Life@Work Connect® platform demonstrates how AI can drive efficiency by providing personalized employee journeys, consolidating various benefits-related data, and offering educational resources.
As healthcare costs are projected to increase dramatically in the coming years, with estimates showing a potential 62% rise by 2026, the pressure on employers to innovate in their benefits offerings is mounting. By integrating advanced technology solutions, companies can empower employees to optimize their benefits usage, thereby alleviating some of the burdens of rising healthcare costs while enhancing overall employee satisfaction and retention.
MWN-AI** Analysis
The recent findings from Conduent's 2026 Blueprint for Smarter Health Survey highlight a formidable challenge for employers: balancing escalating healthcare costs with employees' rising expectations for comprehensive health and wellness benefits. As 69% of employers anticipate medical trend rates surpassing 7%, the urgency for innovative cost management strategies is undeniable.
Employers are increasingly recognizing that robust health benefits play a crucial role in attracting and retaining talent, with 65% measuring benefits success through improvements in these areas. However, the survey underscores the tension between providing desirable benefits and managing unsustainable costs, projecting a potential 62% increase in healthcare expenses by 2026. For a company with 10,000 employees, this translates to an alarming $5 million in additional annual spend.
One promising avenue is the accelerated adoption of artificial intelligence (AI). A remarkable 71% of organizations are exploring AI-driven tools to optimize benefits choices for employees. Conduent's Life@Work Connect® Experience exemplifies this trend, integrating various data sources to deliver personalized benefits journeys and streamline operations. This approach not only empowers employees in managing their healthcare options but also has the potential to significantly reduce wasteful spending on benefits programs.
For investors and employers alike, the key takeaway is clear: embracing AI and data analytics not only offers a pathway to enhance employee engagement but also facilitates smarter financial management of benefits. As healthcare costs will likely continue their upward trajectory, leveraging innovative technologies will be essential in maintaining a competitive edge in talent acquisition and retention while controlling costs. Those organizations that can effectively navigate this complex landscape stand to improve their operational efficiencies and solidify their market positions. In this volatile environment, proactive measures will be vital.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New data highlights a critical challenge: delivering personalized, wellness-focused benefits while controlling costs amid historic healthcare inflation
New research from Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, today announced findings from its 2026 Blueprint for Smarter Health Survey , revealing the growing tension employers face as they work to meet growing employee expectations for comprehensive, personalized benefits while managing unprecedented cost pressures. The survey also shows many HR organizations view AI as an essential tool for navigating these competing priorities.
Key Findings:
- Cost Pressures Intensify: 69% of employers expect medical trend rates above 7%, underscoring the urgent need for smarter cost management strategies.
- Benefits as a Talent Lever: 65% of employers measure benefits success through improved attraction and retention, reinforcing the role of benefits in talent strategy.
- AI Adoption Accelerates: 71% of organizations are implementing AI-driven tools to help employees choose the best benefits options, while 64% plan to offer virtual assistants to support benefits navigation.
The Balancing Act: Human-Centered Design Meets Cost Control
HR leaders increasingly view benefits as a strategic asset aligned to business goals such as attracting and retaining talent. At the same time, employee expectations continue to rise, with mental health and wellness programs topping employee priorities at 65%.
Yet organizations are still struggling to balance these expectations with escalating costs. According to the Business Group on Health, compounding year-over-year medical trend rates could drive a 62% increase in healthcare costs in 2026 compared to 2017. 1 For an employer with 10,000 employees, that equates to roughly $5 million in additional annual spend, based on the industry average of $7,500 per employee for health benefits.
Conduent is partnering with clients across industries to leverage data, automation, and AI to both optimize spend while improving employee engagement with their benefits.
“Healthcare costs will continue to rise, and organizations must balance cost containment with the need to provide comprehensive health and wellness benefits,” said Kimberly Marshall, Chief Commercial Officer of Commercial Solutions at Conduent. “Clients are demanding advanced technology solutions that harness the power of AI to both empower employees to better utilize their benefits and help HR teams to manage benefit program operations more efficiently and cost-effectively. Our Life@Work Connect ® Experience platform delivers richer employee understanding of complex benefit information, helping maximize benefits usage, and support cost savings.”
Transforming Employee Benefits: AI Empowering Employees & Delivering Strategic Value
AI is rapidly evolving from a support tool into a strategic engine that guides benefits decisions, streamlines operations, and increases transparency around medical costs. Conduent’s Life@Work Connect Experience platform integrates health, retirement, and wellness data to create personalized employee journeys – from recommending the best health plan to helping employees manage and maximize their healthcare spend.
The platform, which features Conni , an AI virtual assistant, consolidates data from various sources, offering interactive content, educational resources and guided recommendations to help employees manage their benefits throughout the year.
Conni also provides deeper insights into AI interactions, enrollment trends, usage patterns, and benefit performance enabling employers to identify what is working and where to eliminate wasted spend.
A summary of the report is available here: 2026 Blueprint for Smarter Health Survey
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 51,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $80 billion in government payments annually, enabling approximately 2.0 billion customer service interactions annually, empowering millions of employees through HR services every year and processing over 14 million tolling transactions every day. Learn more at www.conduent.com .
Note: To receive RSS news feeds, visit www.news.conduent.com . For open commentary, industry perspectives and views, visit https://x.com/Conduent , http://www.linkedin.com/company/Conduent or http://www.facebook.com/Conduent .
Trademarks
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
1 https://www.milliman.com/en/insight/2025-milliman-medical-index
View source version on businesswire.com: https://www.businesswire.com/news/home/20260305878853/en/
Media Contact:
Sean Collins, Conduent, +1-310-497-9205, sean.collins2@conduent.com
Investor Relations Contact:
Joshua Overholt, Conduent, ir@conduent.com
FAQ**
How is Conduent Incorporated (CNDT) leveraging AI-driven tools to assist employers in managing rising healthcare costs while enhancing employee engagement in their benefits programs?
What specific strategies does Conduent Incorporated (CNDT) recommend for businesses to effectively balance the need for comprehensive wellness benefits and the pressures of healthcare inflation?
Can you elaborate on how Conduent Incorporated (CNDT) measures the success of its benefits solutions in terms of talent attraction and retention, given the survey findings?
What role does the Life@Work Connect Experience platform play in consolidating health, retirement, and wellness data for employees, according to Conduent Incorporated (CNDT)?
**MWN-AI FAQ is based on asking OpenAI questions about Conduent Incorporated (NASDAQ: CNDT).
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