Believe it or not, we’re already two months into the new year! Between the hustle and bustle of the holidays and getting back in the swing of things this January, you might have missed key industry updates or are curious about what’s coming next. In a recent episode of Talking Benefits from the International Foundation, “The 2026 Benefits Watchlist,” our hosts recapped last year’s big benefit news and took a look at what’s ahead for the industry in 2026.
Major Impacts in 2025
Last year, there were a few events that had a big impact on the benefits industry as a whole.
- The One Big Beautiful Bill Act expanded access to health savings accounts (HSAs), direct primary care and catastrophic health insurance.
- Women’s health benefits like fertility care and menopause support gained attention.
- Retirement security fiduciary rule litigation formally ended.
- SECURE Act 2.0 Roth catch-up contributions were implemented, impacting certain higher-income employee contributions and requiring changing payroll processes and communication to affected participants.
Now, let’s look ahead to 2026 to discover what to focus on and prepare for this new year.
2026 Health Benefits
The Trump Rx platform is coming soon, with promises to facilitate direct-to-consumer prescription drug access. Announced in a September 2025 executive order, this platform aims to make cash prices for select prescription drugs available to individual consumers, which will be significantly discounted compared to list prices. While we have a lot of questions and it is yet unclear how this platform will integrate with employer-sponsored insurance programs, benefits professionals should watch for certain GLP-1 drugs that have challenged employer budgets to become available through Trump Rx. As the Business Group on Health has stated, “employers will be called upon to debate, and establish, their organizational philosophy regarding employee use of cash-pay/DTC sources of pharmaceuticals.”
In December 2025, a new Transparency in Coverage Proposed Rule was released by the U.S. Department of Labor. This rule is intended to make health prices clearer, more accurate, and usable for both consumers and employers. We anticipate that 2026 proposals will build on this, seeking to further improve clarity, increase accuracy and provide more contextual information for health pricing.
2026 Retirement Benefits
During the current Trump administration, the Biden-era Fiduciary Rule was struck down. We can now expect new regulations to closely follow the original ERISA five-part test. This test dictates that a person is considered a fiduciary only if all five conditions are met: (1) they provide advice/recommendations, (2) this advice is provided on a regular basis, (3) this is pursuant to a mutual agreement, (4) the advice will serve as a primary basis for investment decisions, and (5) the advice is individualized.
New Trump Accounts for minor children are set to launch in July 2026. This is a new type of savings account designed to help families build long-term wealth for their children, with the federal government planning to make a one-time $1,000 pilot program contribution to the Trump Account of each eligible child born between 2025 and 2028. IRS guidance released in December 2025 includes employer contribution programs as well; some employers have announced a contribution plan for employees’ children’s accounts, while others are planning to match the federal pilot program one-time contribution.
AI in 2026
Artificial intelligence has been a trending topic in 2025 and shows no signs of slowing down soon. As tools become more widely available, organizations are seeking ways to improve productivity and engagement with these new technologies. Here are a few ideas:
- AI chatbots can help employees understand their benefit plans and prompt decisions.
- AI can deliver personalized “nudges” to employees, providing customized proactive support for things like benefit choices, reminders for enrollment, benefits optimization based on a life event (like having a new baby) and more.
- Retirement personalization using AI can simulate various income and longevity scenarios, helping make the retirement transition more predictable, confident, and financially secure.
- AI-assisted leave management processes can be implemented, using the technology to analyze medical records, claims histories and workforce trends.
- Use AI for investments management to monitor regulatory and legal compliance, identify cybersecurity threats, assist with record keeping and more.
The ERISA Industry Committee (ERIC) has published AI in HR Benefits: A Framework for Use Cases, outlining a three-factor framework for these use cases. The three factors are as follows.
- Core Employee Life Cycle Stages
When AI is used in key moments of the employee journey to help them navigate benefits, streamline processes and deliver timely information.
- Key Benefit Categories
Which benefit categories AI supports, including health administration, retirement, leave, payroll and learning.
- Users and Roles
How AI is used by employees as front-end users and by employers as back-end users.
An Important Reminder
When considering the use of artificial intelligence, it is important to remember that this technology is not the right fit for every task. AI is meant to support human work, not replace it. AI systems do not have common sense and are not interpretive—They require human oversight, fact-checking and management. Ensure you are using AI safely and wisely, in secure environments that protect sensitive data. Work with a team of people to guide your approach and inform organizational policies regarding AI.
To hear more of our industry predictions for 2026, tune in to the full episode of Talking Benefits, available wherever you find podcasts.
