SMAR Daily Industry News

MetLife Study Finds Benefits Confidence Gaps Among US Workers

More than six in ten American employees say they feel confident their benefits would protect them in a major life event, yet only about one in five actually reviews their options each year, according to MetLife's 2026 Annual U.S. Employee Benefit Trends Study. The gap is draining workers' financial security and affecting employers' balance sheets, a link many organizations have not connected to open enrollment practices.

Jamie Madden, senior vice president of Workforce Engagement and Benefits Connectivity at MetLife, says the issue stems from a systemic problem shared by benefits brokers, plan sponsors, and carriers. She notes that employees often enroll year after year assuming they have adequate protection without reassessing whether coverage aligns with changing life, health, or financial circumstances.

The study found that half of employees have delayed or avoided medical care because of out-of-pocket costs, illustrating how focusing on premium price during enrollment can lead to downstream coverage trade-offs. Nearly half of U.S. adults have cut or are considering cutting workplace benefits as costs rise, and among those who later wish they'd chosen differently, 35 percent say they prioritized monthly cost over coverage depth.

Madden emphasizes that brokers and employers must provide year-round benefits education, not just during open enrollment. MetLife is deploying Upwise, a benefits engagement platform that prompts employees throughout the year to explore options relevant to their current life stage. Sixty-four percent of Upwise users reported that personalized guidance made benefits decisions easier.

Employees in the study indicated they would benefit most from side-by-side comparisons, plain-language explanations, out-of-pocket cost estimates, and recommendations tailored to individual health and financial situations. While 58 percent of employees spent less than an hour choosing benefits, Madden argues that decision quality depends on understanding protection needs rather than time spent.

When employees lack confidence in their coverage, they are more likely to delay care, avoid using benefits, or face unexpected financial strain. Employers feel the impact through lower productivity, higher absenteeism, and greater financial stress across the workforce—costs that do not appear as line items on benefits budgets but are nonetheless real.

Madden sees the broker’s role evolving as technology handles more transactional and data-heavy aspects of benefits administration. She predicts brokers will become even more strategic partners, offering market expertise and insights to help employers navigate rising health-care costs, shifting workforce needs, and a complex benefits landscape.

Why it matters

Understanding the confidence gap helps insurers and brokers target year-round engagement to reduce employee cost-shifting and employer productivity losses.

FAQ

What proportion of U.S. employees feel confident their benefits will protect them in a major life event?
More than six in ten employees say they feel confident.

How many employees actually review their benefits options each year?
About one in five employees review their options carefully each year.

What percentage of employees delayed or avoided medical care due to out-of-pocket costs?
Half of employees have delayed or avoided medical care because of out-of-pocket costs.

What share of Upwise users said personalized guidance made benefits decisions easier?
Sixty-four percent of Upwise users reported that personalized guidance made decisions easier.

Source: Insurance Business America. See the original source for full details.